The pizza delivery industry is monopolistically competitive. Gino's pizzeria raises its prices by 10% but all the other pizzerias in town keep their prices the same. Which of the following is the most likely to occur?
A) Gino's pizzeria profits will increase.
B) Gino's pizzeria will not be able to sell any pizza, since it was the only firm to raise its price.
C) Gino's pizzeria will lose some of its customers.
D) The number of customers served by Gino's pizzeria will increase.
Correct Answer:
Verified
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