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Suppose Mara and David Compete, Selling Fried Green Tomatoes in a Perfectly

Question 169

Multiple Choice

Suppose Mara and David compete, selling fried green tomatoes in a perfectly competitive market. If Mara increases output,


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

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