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.

---

Definitions:

Email

A method of exchanging digital messages over the Internet, used for both personal and professional communication.

Appointment

A prearranged meeting or engagement set between two or more parties at a specific time and location, often for professional or formal purposes.

Observation Method

A research technique that involves systematically watching and recording behaviors and events in order to gather data about a subject.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers, competitors, and the industry as a whole.