Y5

output_AUS3 profit_AUS3 Explain what is meant by a "deadweight loss" if an industry was a monopoly. Explain whether the deadweight loss would be smaller, larger or stay the same if the industry became a Cournot duopoly. (10 marks) Your answer should include a well-labelled diagram. (10 marks) "A profits tax levied on a monopoly is a neutral tax." Evaluate this statement. (10 marks) Your answer should include a well-labelled diagram. (10 marks)