Illustrates the consumer surplus and producer surplus

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Question: A small community is served by fi ve independent gas stations. Gasoline is a highly competitive market. Use the market demand curve to illustrate the consumer and producer surplus created by the market. Now imagine that the fi ve independent gas stations are all combined under one franchise. Create a new graph that illustrates the consumer surplus, producer surplus, and deadweight loss after the monopoly enters the market.

Reference no: EM131481067

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