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Unformatted text preview: Assume: 1. Initially industry is perfectly competitive (constant cost) and in long-run equilibrium. C Therefore, Supply is perf. elastic & LMC = LATC. 2. One firm buys out all other firms and becomes a monopoly with much lower costs of production due to economies of scale. 1. Perfect Competition 2. Monopoly Change due to Monopoly P Q TCS TPS TMS DWL D:\ECON202\CS\CS 12.1 Monop Case Against.wpd...
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This note was uploaded on 02/13/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08