Problem - A firm faces the following costs: total cost of capital 2,500$ price paid for labor=14$ per labor unit and price paid for raw materials =4$ per raw material unit A suppose the firm can produce 6500 units of output this year by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average total cost of producing the 6,500 units of output TC=$ ATC=$ Now assume the firm improves its production process so that it can produce 7,750 units of output this year by combining its fixed capital with 100 units of labor 450 units of raw material. What are the total cost and average total cost of producing the 7,750 units of output Tc=$ ATC=$ If units of output can always be sold for a 1$ each then by how much does the firms profit increase after it improves its production process?