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Frozen Paws Wants to Prevent Happy Paws from Entering the Pet

Question 18

Multiple Choice

Frozen Paws wants to prevent Happy Paws from entering the pet frozen treat market. If Frozen Paws expands its capacity, the expansion can lead to all of the following except which one?


A) increase Frozen Paws' profit- maximizing quantity
B) decrease Frozen Paws' marginal cost
C) increase Frozen Paws' profit- maximizing price
D) decrease Happy Paws' profit from entering the market

Correct Answer:

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