9. Suppose a firm maximizes profit by producing an output of 500. If its total fixed cost

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9. Suppose a firm maximizes profit by producing an output of 500. If its total fixed cost increases—say its rent increases—profit will fall. To continue to maximize profit under this higher cost condition, it will

a. produce more than 500.

b. produce less than 500.

c. continue to produce 500.

d. reduce its total variable cost—for example, hire fewer workers.

e. reduce its marginal cost—for example, hire fewer workers.

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