9. Suppose a perfectly competitive firm maximizes profit by selling their product for $20 per unit and producing 200 units The firm earns positive economic profit of $500 with a fixed cost of $100. Because of a clerical error, the firm's fixed
cost falls from $100 to $50.
(a) What is the firm's variable cost when producing 200 units?
(b) "This firm's profit maximizing quantity will be higher than 200 units if their fixed cost decreases from $100
to $50, ceteris paribus." True/False/Uncertain. EXPLAIN

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.