Consider the information in the file HW7 Single Price Monopoly. Prior to monopolization of the market by the firm, total production in the country was units and the market price was dollars per unit. After the firm buys out the existing firms and establishes the monopoly, it reduces the production to units and increases the price to dollars per unit. In old days, consumer surplus was equal to dollars. After the monopoly takeover of the market, consumer surplus shrinks to dollars. On the other hand, in old days, the perfectly competitive producers enjoyed an aggregate producer surplus of dollars. The monopolist's producer surplus, however, equals dollars. Of the monopolist's producer surplus, dollars is the amount of consumer surplus that consumers lose to the monopolist after the firm monopolizes the market. The deadweight loss of the monopoly equals dollars.



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