Zoe's Bakery operates in a perfectly competitive industry.The variable costs at Zoe's Bakery increase, so all of the cost curves (with the exception of fixed cost) shift leftward.The demand for Zoe's pastries does not change, nor does the firm shut down.To maximize profits after the variable cost increase, Zoe's Bakery will ________ its price and its level of
production.
A.raise; increase
B.decrease; increase
C.raise; decrease
D.do nothing to; decrease

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The Answer of Zoe's Bakery operates in a perfectly competitive industry.The variable costs at Zoe's Bakery increase, so all of the cost curves (with the exception of fixed cost) shift leftward.The demand for Zoe's pastries does not change, nor does the firm shut down.To maximize profits after the variable cost increase, Zoe's Bakery will ________ its price and its level of
production.
A.raise; increase
B.decrease; increase
C.raise; decrease
D.do nothing to; decrease

Zoe's Bakery Operates in a Perfectly Competitive Industry