Question: 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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