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A producer with market power faces a constant marginal cost and a linear demand curve. She currently employs an expert salesperson who sets separate prices
A producer with market power faces a constant marginal cost and a linear demand curve. She currently employs an expert salesperson who sets separate prices for each individual customer. The expertise of the salesperson is so strong that the monopolist is able to set each price equal to the customer's willingness to pay. The producer earns a profit of $10,000. The salesperson leaves, and so the monopolist is forced to charge a single price to all customers. What is the profit?
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