Speedy Flowers competes in the monopolistically competitive flower delivery industry in a city. The firm raises its prices by 5% while all other florists keep their prices the same. Which of the following is most likely to occur? Speedy Flowers will
A) be unable to sell any flowers because it was the only firm to raise price.
B) lose some of its customers.
C) increase its profits.
D) serve an increased number of customers.
Correct Answer:
Verified
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