Monopoly: Consumer surplus and deadweight loss Suppose the ride for hire industry in Winnipeg was initially perfectly
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Monopoly: Consumer surplus and deadweight loss
Suppose the "ride for hire" industry in Winnipeg was initially perfectly competitive, but an international ride sharing company (Uber) entered the market and soon had a monopoly on the market. Assume that the old companies together and Uber have the same marginal cost curve.The following diagram represents the demand, MC and MR curves for the market, with P being average price per typical trip and Q being number of trips per hour.
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