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(1) Draw the demand, marginal-revenue and marginal-cost curves for the textbook master in this cartoon. (2) Show the profit-maximizing price and quantity in your graph.
(1) Draw the demand, marginal-revenue and marginal-cost curves for the textbook master in this cartoon.
(2) Show the profit-maximizing price and quantity in your graph.
(3) Show the levels of price and quantity that maximize total surplus.
(4) Show the deadweight loss from the monopoly. What leads to the deadweight loss?
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