1) Depict graphically the impact it has on the equilibrium quantity and price in the market for rational murder and, in a separate graph, in the market for irrational murder. Briefly explain the reasoning behind your answers.

DRAW A GRAPH FOR UPVOTE

The heroin and cocaine markets have an oligopoly structure at the upper levels giving them monopolistic power. There are also territory rights at the retail juggler level, which gives them geographic monopolistic power. For each of the following scenarios briefly explain your reasoning and provide a graph to support your answer.

Is monopoly power at the top levels of distribution good or bad for society? Use a graph to explain by comparing it to the alternative of having a competitive market structure.

Is monopoly power at the top levels good or bad for society if there are economies of scale present in the production and/or distribution of these drugs? Use a graph to explain by comparing it to a competitive structure.

At the street level jugglers are often able to perfectly price discriminate. Would society prefer a perfect price discriminating monopolist or a competitive structure?