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A Firm Has an Incentive to Decrease Supply Now and Increase

Question 240

Multiple Choice

A firm has an incentive to decrease supply now and increase supply in the future if it expects that


A) more firms will enter the market in the future.
B) the prices of inputs used to produce its product will rise in the future.
C) the price of its product will be lower in the future than it is today.
D) the price of its product will be higher in the future than it is today.

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