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i. Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy? Explain.
ii. Define natural monopoly. What does the size of a market have to do with whether an industry is a natural monopoly?
iii. Why is a monopolist's marginal revenue less than the price of its good? Can marginal revenue ever be negative? Explain.
a monopolists demand function is given byp 80 - 3qwith mr 80 - 6q.its total cost function isnbsptc 20q 200with mc
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What share will be paid by the consumer in the long run? How about the short run? Provide some intuition for why these are different.
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