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If the Perfectly Competitive Firm Withholds Some of Its Output

Question 173

Multiple Choice

If the perfectly competitive firm withholds some of its output from the market,


A) in many cases it can drive the market price up.
B) in many cases it can drive the market price down.
C) it will have no effect on market price whatsoever.
D) it is impossible to generalize what the long-run effect will be.

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