Question: A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from

A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85. All else equal, if the firm continues its production in the same economic environment, the firms economic profits should

increase if output is low enough

decrease

stay the same

increase if output is high enough

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