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Question: assume the industry demand for a product is p ...

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Assume the industry demand for a product is P = 1000 − 20 Q. Assume that the marginal cost of product is $10 per unit.

(a) What price and output will occur under pure competition? What price and output will occur under pure monopoly (assume one price is charge to all customers)? Clearly show all your calculations. Draw a clearly labeled graph.

(b) Draw a graph that shows the lost gains from trade that result from having a monopoly.

**PLEASE INCLUDE GRAPHS IN ANSWER**

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