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2. Assume that wheat is traded in perfectly competitive markets. A senator from a farm state is proposing legislation to license wheat production so that

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2. Assume that wheat is traded in perfectly competitive markets. A senator from a farm state is proposing legislation to license wheat production so that wheat will be produced and sold by only a single producer becoming a monopoly. Discuss the economic implications of this proposal including the expected impact on allocation efficiency, quantity of wheat produced, and the potential for the single wheat producer to earn positive economic profits

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