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Good Afternoon! Can you please help explain this problem for me? Suppose a profit-maximizing firm in a perfectly competitive market is earning an economic profit
Good Afternoon! Can you please help explain this problem for me?
Suppose a profit-maximizing firm in a perfectly competitive market is earning an economic profit of $1,345. If the firm's fixed cost increases from $200 to $300, the firm will:
A) earn a greater profit.
B) earn a smaller profit.
C) raise its price.
D) reduce its output.
Thank you!
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