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What is the innovator profit prior to the innovation

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Reference no: EM132639513

The market for pizza is perfectly competitive and demand is given by = 48 - 4 . Initially, all the sellers have the same marginal cost = 6. Suppose one seller reduced her marginal cost to $4 through some non-drastic innovation. Call this person the innovator.

a. What is the innovator's profit prior to the innovation?

b. What is the innovator's profit after the innovation?

c. What is the additional profit generated by the innovation?

Reference no: EM132639513

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