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Q. Assume which the potato chip industry in the Northwest in 2007 was competitively structured also in long-run competitive equilibrium; Industries were earning a normal rate of return also were competing in a monopolistically competitive marketplace structure. In 2008, two smart lawyers quietly bought up all the Industries also began operations as a monopoly called "Wonks." To operate efficiently, Wonks hired a management consulting industry which estimated a different long-run competitive equilibrium. Given which the new company is now run as a monopoly, how will this benefit the stakeholders involved, such as the government, businesses also consumers? Given the transition from a monopolistically competitive industry to a monopoly, illustrate what will be the changes with regard to prices also o/p in both of these marketplace structures? Illustrate what marketplace structure is more beneficial for Wonks to operate in also will this be the same marketplace structure which will benefit consumers? Explain the reasoning behind your answers.
The equilibrium quantity increase or decrease depends on Demand
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