Assume the following market switches from one with a single firm with market power to one...

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Assume the following market switches from one with a single firm with market power to one that is perfectly competitive (if, for instance, the government forced a break up and allowed entry). By how much will producer surplus (PS) decrease from before (assume the monopoly set a single profit-maximizing price)? Price (dollars/unit) $50 MC T T 40 40 30 20 20 B 10 H C E F D 200 400 600 800 1000 Quantity Assume the following market switches from one with a single firm with market power to one that is perfectly competitive (if, for instance, the government forced a break up and allowed entry). By how much will producer surplus (PS) decrease from before (assume the monopoly set a single profit-maximizing price)? Price (dollars/unit) $50 MC T T 40 40 30 20 20 B 10 H C E F D 200 400 600 800 1000 Quantity