11. Again considering the effect of an increase in the productivity of diamond miners. Which of the following best describes the resulting profit experience of the diamond industry.

1. an increase in profits from diamond sales because variable costs fell.
2. an increase in profits from diamond sales because the demand for diamond shifted out.
3. an increase in profits from diamond sales because fixed costs fell.
4. a reduction in profits from diamond sales because variable costs rose.
5. a reduction in profits from diamond sales because the demand for diamond shifted back.

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