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Happy Feet Wants to Prevent Best Nails from Entering the Nail

Question 44

Multiple Choice

Happy Feet wants to prevent Best Nails from entering the nail salon market. If Happy Feet expands its capacity, the expansion can lead to all of the following except which one?


A) increase Happy Feet's profit- maximizing quantity
B) increase Happy Feet's marginal cost
C) decrease Happy Feet's profit- maximizing price
D) decrease Best Nails' profit from entering the market

Correct Answer:

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