Suppose a Profit-Maximizing Firm in a Perfectly Competitive Market Is

Multiple Choice

Suppose a profit-maximizing firm in a perfectly competitive market is collecting $1,999 in total revenues. If the total cost of its fixed factors of production falls from $500 to $400, the firm will:

A) expand its output.
B) lower its price.
C) earn greater profits or smaller losses.
D) earn smaller profits or larger losses.