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In reflecting on a recent term of service, a former head of the Antitrust Division of the U.S. Department of Justice said, ''I was convinced
In reflecting on a recent term of service, a former head of the Antitrust Division of the U.S. Department of Justice said, ''I was convinced that a little bit of efficiency outweighs a whole lot of market power.'' Evaluate this statement by considering two sources of efficiency: decreasing average total cost and research and development. Describe how these should be balanced against the deadweight loss from market power
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