Suppose that the firms in a perfectly competitive industry are organized into a profit-maximizing monopoly. The monopolist

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Suppose that the firms in a perfectly competitive industry are organized into a profit-maximizing monopoly. The monopolist charges a higher price and produces a lower output level than was the case under perfect competition. The result to a reduction in consumer surplus and an equivalent increase in producer surplus. Thus, while monopolizing the industry is detrimental to consumers, the net effect on society is zero. Do you agree? If not, then why not?

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