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Question
if there were many lemonade stands on the same street, what would happen?
each lemonade stand would make more money
each lemonade stand would sell out faster
each lemonade stand would make less money
more buyers would buy lemonade
When many lemonade stands compete on one street, the total number of potential customers on that street stays roughly the same. Each stand has to split the customer base with more competitors, so each will get fewer sales, leading to lower revenue per stand.
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C. each Lemonade stand would make less money