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There are currently ten monopolistically competitive food trucks operating at a busy beach. To raise money earmarked for unrelated city services*, the city increases the
There are currently ten monopolistically competitive food trucks operating at a busy beach. To raise money earmarked for unrelated city services*, the city increases the annual fixed fee required to operate a food truck at the beach. In the short run, the prices at the food trucks [ Select ] . In the long run, the prices [ Select ] . *Note: You should ignore any shift of the market demand curve caused by better city or beach amenities for the purposes of this
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