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If the government imposes a per-unit tax on the production of lemons produced in a perfectly competitive market, which of the following correctly describes the the short-run impact of the tax on the output of individual firms?

A

Short-run output will decrease.

B

Short-run output will increase.

C

Short-run output will not change.

D

Short-run output will decrease only if the tax is more than firm's marginal revenue.

E

Short-run output will increase only if the tax is less than the firm's marginal revenue.

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