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Microeconomics


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I need help answering the following question: When we calculated the deadweight loss of monopoly in class, we assumed that both the monopoly and the competitive firm had the same marginal cost function. Explain what would happen to the deadweight loss to society if the monopolist?s marginal cost was lower than that of a competitive industry. Think of one or two examples of monopolists with zero marginal cost. This question requires a graph which does not count towards the page limit. b. If a natural monopoly is regulated to make zero economic profit, it will produce less than a competitive industry. On the other hand, if a regular monopoly (not natural monopoly) is regulated to make zero economic profit, it will produce more than a competitive industry. Are these TWO statements true or false? Explain why. At least one graph is required for this question. I will need to include graphs.
Posted Date
04/15/2018

Listing ID
58798128
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