Suppose Thelma and Louise Both Sell Fried Green Tomatoes in a Competitive

Multiple Choice

Suppose Thelma and Louise both sell fried green tomatoes in a competitive price-taker market. If Louise increases her output,

A) Thelma must reduce output
B) the price Thelma can charge falls
C) the price Thelma can charge rises
D) the price Thelma can charge is unaffected
E) Thelma's profits must fall