Consider the same market described in Problem1, but now assume that test preparation services are monopolized. Also

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Consider the same market described in Problem1, but now assume that test preparation services are monopolized. Also assume that the monopolist's marginal cost curve coincides with the market supply curve in the last problem. How does the monopoly output compare with the socially efficient output? Calculate the deadweight loss of monopoly. Draw a figure to illustrate your answer.
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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