Imagine that the government has created rules so that all firms in an economy are monopolies. Assume
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Imagine that the government has created rules so that all firms in an economy are monopolies. Assume all consumers are alike and all own equal shares in the monopolies. As a result, all monopoly profits are earned by the consumers who have to pay monopoly prices. Are people in this economy better off or worse off because each firm is a monopoly and is making a profit?
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