If a firm is currently in short-run equilibrium earning a profit, what

If a firm is currently in short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision?

A) The firm will decrease output to earn a higher profit.
B) The firm will increase output but earn a lower profit.
C) The firm will not change output but earn a lower profit.
D) The firm will not change output and earn a higher profit.

ANSWER

C