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A Coffee Manufacturer Raises the Price of Its Coffee by 10

Question 14

Multiple Choice

A coffee manufacturer raises the price of its coffee by 10%, and the quantity demanded of its coffee falls by only 12%. This firm has


A) no control over the market price since the quantity demanded fell by a larger percentage than the percentage price increase.
B) some market power.
C) some output power.
D) not been able to prevent its competitors from competing with it on price.

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