If a price-setting firm has positive economic profits, a reduction in its fixed costs would

A) decrease the profit-maximizing price and increase the profit-maximizing quantity produced

B) increase the profit-maximizing price and decrease the profit-maximizing quantity produced

C) have an effect that depends on the price elasticity of demand

D) not affect the profit-maximizing price or quantity

E) have an effect that depends on the level of marginal cost