[Solved] Max operated a video store in a small community, and because of financial problems, decided to show pornographic movies. The citizens were outraged when they learned about the change and demanded that the police close down the store. The police refused, saying there was no law against it. The citizens then persuaded the town council to pass a bylaw making such immoral activities a crime. This was done, and Max was ordered by the police to close down the theatre. Which one of the following accurately describes Max's legal position? A) Because this is a moral matter, no level of government can interfere with his right to operate such a business anywhere he wants. B) He must close down the theatre because the town council has the power to require him to conform with such a provision. C) He must close down whether or not the town council has the power because, once it is clear that the standards of the community designate a particular business as offensive, that business cannot be allowed to continue. D) He can stay open because the town council had no power to make such activities a crime. E) He can stay open but cannot advertise in any way to promote this activity. Economic Profits: Profits calculated by subtracting both explicit and implicit costs from total revenues, which is a more comprehensive measure of true profitability. Total Costs: The complete costs involved in the production of goods or services, including both fixed and variable costs. Output Sold: The quantity of a company's products or services that have been purchased by customers. Market System: Investment, production, and distribution closely follow supply and demand directives in this economic system, which allows for the free fluctuation of goods and services prices within an unrestricted price system.