1.4. The retail liquor industry is potentially a competitive industry. However, the liquor retailers of a southern state, with the cooperation of the state legislature, organized a trade association that sets prices for all firms. For all practical purposes, a competitive industry became a monopoly. Compare the price and output policy of a purely competitive industry with the policy that would be established by a profit-maximizing monopolist or trade association. Who benefits and who is hurt by the formation of the monopoly?