The company before is in competitive market, now Assume that suppose the company is becoming the largest producer in the raspberry market (dominant price maker in the industry), will their profit-maximizing price and output remain the same or not? Justify your answer with some theoretical evidence.

Suppose the demand curve and supply curve for a good is stable (elastic). If the government imposed a maximum price (Ceiling Price) below the market-clearing level, would a deadweight loss become greater or lower to a producer? Explain and draw only ONE diagram.

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1 If a company becomes the largest producer in the raspberry market and hence a price maker their profitmaximizing price and output are highly likely ... View the full answer