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If All of the Restaurants in a Small Town Colluded

Question 42

Multiple Choice

If all of the restaurants in a small town colluded and agreed to raise dinner prices,this would lead to a loss to society because


A) some dinners that could be served are not.
B) the number of dinners served stays the same, but the buyers face higher prices.
C) collusion is illegal.
D) the restaurants would become too crowded with new customers.

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