Use the Following for Questions 40-42

question 71

Multiple Choice

Use the following for questions 40-42.
Exhibit: Profit Maximization for a Firm in Monopolistic Competition

-(Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC´.Suppose further that after the innovation reduced the cost to ATC´, it costs a total of $18 per unit to produce 170 units per day.If the firm charges a price equal to marginal cost, total net profit will be:

• A) $1,190.
• B) $1,700.
• C) $3,060.
• D) $3,400.

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Definitions:

Excess Calories

Consuming more calories than the body uses, potentially leading to weight gain and associated health risks.

Body Fat

The portion of the human body composed of fat tissue, important for energy storage, insulation, and protection.

Essential Fat

Necessary fat required for normal physiological functions, found in the marrow, organs, central nervous system, and muscles.

Body Weight

The total mass of an individual, often measured to assess health and nutritional status.