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n Pakistan, there is only one sugar producer, a government owned monopoly called Pakistan Sugar. Suppose that the company were run in a way to

n Pakistan, there is only one sugar producer, a government owned monopoly called Pakistan Sugar. Suppose that the company were run in a way to maximize profit for the government. That is, assume that it behaved like a private profit-maximizing monopolist. Assuming demand and cost conditions are given on the following diagram, at what level would Pakistan Sugar target output and what price would it charge?

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