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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 fix 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. decrease; increaseb. raise; increasec. do nothing to; decreased. raise; decrease
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