Use the following to answer questions:
Figure: Profit Maximization for a Firm in Monopolistic Competition 
-(Figure: Profit Maximization for a Firm in Monopolistic Competition) Look at the figure Profit Maximization for a Firm in Monopolistic Competition. Suppose that an innovation reduces a firm's costs from ATC to ATC'. Before the innovation reduced the cost, the firm's maximum economic profit was:
Definitions:
Direct Labor Price
Refers to the rate paid for the labor directly involved in the production of goods or services.
Ideal Standards
Benchmarks for performance or production that assume perfect efficiency and effectiveness, often used for planning purposes.
Favorable Variances
Differences between expected and actual financial performance that result in better-than-expected profitability or cost savings.
Standard Costs
Represents the expected cost of producing or purchasing items, used for budgeting and cost control purposes.
Q24: (Figure: Firms in Monopolistic Competition) Look at
Q41: In long-run equilibrium in perfect competition, marginal
Q142: Until 1890, trusts in which firms in
Q156: (Figure: Firms in Monopolistic Competition) Look at
Q162: If the marginal social benefit received from
Q181: (Figure: Payoff Matrix for Ajinomoto and ADM)
Q189: According to the Coase theorem, when negative
Q194: A monopolistically competitive firm has excess capacity
Q202: Because of the lack of substitutes, the
Q228: The breakup of Standard Oil in 1911