Tom Produces Commemorative T-Shirts in a Competitive Market

Multiple Choice

Tom produces commemorative t-shirts in a competitive market. If Tom decides to decrease his output, this will

A) ​increase his revenue, since the output decrease leads to a higher market price.
B) ​increase his revenue, since Tom's competitors will also decrease their output, so that price rises to offset the drop in Tom's output.
C) ​decrease his revenue, since his output has decreased and the price remains the same.
D) ​decrease his revenue, since the price does not rise sufficiently when output drops to offset the drop in Tom's output.