Assume That Bright Lights,Inc

Multiple Choice

Assume that Bright Lights,Inc.is part of a perfectly competitive market.If Bright Lights,Inc.decides to raise their prices for vanity light fixtures by 20%,which of the following is most likely to result?

A) Bright Lights, Inc.'s supply curve will shift to the left and they will produce less output.
B) Bright Lights, Inc. will increase the price of their output to compensate for the rise in their rent.
C) Bright Lights, Inc. will earn less profit but will produce the same amount of output.
D) Bright Lights, Inc. will shut down immediately.