Tom produces commemorative t-shirts in a competitive market. If Tom decides to decrease his output, this will

Question

Tom produces commemorative t-shirts in a competitive market.    If Tom decides to decrease his output, this will

Accepted Answer

​decrease his revenue, since his output has decreased and the price remains the same.

Answer

​decrease his revenue, since the price does not rise sufficiently when output drops to offset the drop in Tom's output.

Answer

​increase his revenue, since the output decrease leads to a higher market price.

Answer

​increase his revenue, since Tom's competitors will also decrease their output, so that price rises to offset the drop in Tom's output.

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