Suppose Thelma and Louise Both Sell Fried Green Tomatoes in a Competitive

question 21

Multiple Choice

Suppose Thelma and Louise both sell fried green tomatoes in a competitive price-taker market. If Louise increases her output,

• A) Thelma must reduce output
• B) the price Thelma can charge falls
• C) the price Thelma can charge rises
• D) the price Thelma can charge is unaffected
• E) Thelma's profits must fall

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Definitions:

Alteration

A change or modification, usually used to refer to a small change in structure, form, or quality.

Adjustment

A process of adapting or changing to fit new conditions or circumstances.

Saccades

Rapid, abrupt movements of the eyes that abruptly change the point of fixation.

Voluntary Fixation

A consciously controlled process of stabilizing focus on a particular stationary or moving object.