Use the Following for Questions 40-42

question 4

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'.After the innovation reduced the cost, the firm's maximum economic profit is:

• A) $0.
• B) $30.
• C) $1,500.
• D) $3,000.

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Definitions:

Alkene

Hydrocarbons with at least a single carbon-carbon double bond, unsaturated in nature, adhering to the formula CnH2n.

(R)-2-Ethoxybutane

A specific enantiomer of 2-ethoxybutane, which is an organic compound used in some chemical syntheses, defined by its specific three-dimensional arrangement.

Sodium Butoxide

An organic compound used as a strong base in various chemical syntheses, derived from butanol.

Iodoethane

An organoiodine compound with the formula C2H5I, used as an alkylating agent in organic synthesis.