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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.
Calculate the original market equilibrium price and quantity in absence of the price support policy.
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Suppose that Jenny is the only consumer in the antique car market. Her willingness to pay for an antique car is $200,000. Based on Jenny's willingness to pay, plot her demand schedule in the graph below using the blue points (circle symbol). Line ..
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