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A firm with market power faces a linear demand curve. With perfect price discrimination, it is producing 1,000 units of output and earning producer surplus
A firm with market power faces a linear demand curve. With perfect price discrimination, it is producing 1,000 units of output and earning producer surplus of 5,000. Marginal cost is constant at 10. If the firm cannot price-discriminate, how much producer surplus will it earn?
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