City tax reduction-reduciton in price or increase in price

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Because of a city tax reduction, the total fixed cost a firm must pay is reduced by $500 monthly. The firm operates in conditions of perfect competiion. If the firm seeks to maximize its profit, this cost reduction should (at least in the short run) result in: a reduciton in price or an increase in price, or and increse in output, or a reduction in output, or no change in output or in price?

Reference no: EM131173940

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