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There was some dramatic change in the market structure that the one firm merges all the firms in the aforementioned industry. That means now the industry has a monopolist.
1) Find the price, quantity, and the level of profit that a monopolist will face.
2) Graphically illustrate the demand curve, marginal cost curve, and average cost curve. And illustrate the monopolist profit and the diagram.
3) Calculate the consumer surplus, producer surplus, monopoly power, and social welfare.
4) Identify the difference between the market with infinite producers and monopoly situation both graphically and numerically.
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The company you work for asks you to recommend whether their Mercedes truck should be replaced now or kept in service for an additional 10 years.
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Calculate deadweight loss if U.S. imposes a tariff of 25 cents per bottle of imported wine.
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