10. In reflecting on a recent term of service, a former head of the Antitrust Division said,...

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10. In reflecting on a recent term of service, a former head of the Antitrust Division said, “I was convinced that a little bit of efficiency outweighs a whole lot of market power.” Evaluate this statement by considering two sources of efficiency: decreasing average total cost and research and development.

Describe how these should be balanced against the deadweight loss from market power.

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