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Carol lives in a small village where she owns a bicycle shop. This is the only bicycle shop in the village, so all villagers buy

Carol lives in a small village where she owns a bicycle shop. This is the only bicycle shop in the village, so all villagers buy their bicycles from Carol. Discuss the features of the market Carol's business operates within. With the help of suitable diagrams explain how Carol maximises her profit. Do you think the market outcomes are efficient in such market? Justify your answer.

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