Mary Ann and Don provide catering services in a perfectly competitive market.When they started in business, the going rate was $50 per person per meal.After the price increased to $60, they became willing to supply more meals.Their response to the price change is shown by

Question

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In a perfectly competitive market, an increase in price leads to a movement up along the firm's marginal cost curve, as firms are willing to supply more at higher prices.

Mary Ann and Don Provide Catering Services in a Perfectly