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You are the benevolent social planner for your city. Several small food businesses approach you, stating that they plan to increase their prices to compete
You are the benevolent social planner for your city. Several small food businesses approach you, stating that they plan to increase their prices to compete with national food establishments. As a benevolent social planner, would you advise them to raise their prices or not? Explain your answer using concepts in producer and consumer surplus.
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