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Show graphically the consumer surplus and producer surplus under perfect competition (part b.). Then draw a separate graph showing consumer and producer surplus under monopoly
Show graphically the consumer surplus and producer surplus under perfect competition (part b.). Then draw a separate graph showing consumer and producer surplus under monopoly (part a). Illustrate on the second graph the deadweight loss due to monopoly. Explain in words the consequences of having a monopoly instead of perfect competition on consumer surplus, producer surplus, and on total welfare. Note: You do not need to plot the exact functions from a. and b.; an illustration is fine
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