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Mario's Pizza Wants to Prevent Angelo's Pizza from Entering the Pizza

Question 1

Multiple Choice

Mario's Pizza wants to prevent Angelo's Pizza from entering the pizza delivery market. If Mario's Pizza advertises that it will always undercut any competitor's price, the effect of advertising ______Mario's Pizza's profits due to its cost and ______Mario's Pizza's profits due to a(n) ______
In its demand.


A) decreases; decreases; increase
B) increases; increases; increase
C) decreases; increases; increase
D) decreases; decreases; decrease

Correct Answer:

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