Final answer:
The answer to the student's question is A. Increase, Decrease. By increasing demand and decreasing production costs, a firm can expand and maintain or grow its market share.
Step-by-step explanation:
When demand for a firm's products grows and it seeks to maintain its market share, the firm's growth strategy should aim at two primary objectives. These are to increase demand for its products and to decrease production costs. By increasing demand, the firm can sell more products, potentially leading to higher profits. Meanwhile, decreasing production costs can allow the firm to be more competitive in pricing, which can also help in maintaining or growing its market share. To recap, a growing firm must focus on increasing demand while simultaneously working to decrease production costs.