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    Perfectly Competitive, Monopoly

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    4. If the market is perfectly competitive, what does profit equal?

    5. If the market is a monopoly market, what does profit equal?

    6. Redraw the figure and label consumers' surplus when the market is perfectly competitive and when it is monopolized.

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    https://brainmass.com/economics/monopolies/perfectly-competitive-monopoly-103626

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    4. If the market is perfectly competitive, what does profit equal?
    When the market is perfectly competitive, the market price is equal to the long run equilibrium price, or the minimum average total cost. In this diagram, P = ATC = 50. Since P=ATC, profit= (P-ATC)*Q = 0, which ...

    Solution Summary

    Depict consumers' surplus when the market is perfectly competitive.

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