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A monopolist faces a demand curve of P = 40 - 0.5Q and has a constant marginal cost of $6. If the government imposes a price ceiling at $7:consumer surplus will increase, producer surplus will decrease, and the deadweight loss will be smaller.the monopolist will be forced to shut down in the short run.The price ceiling will not be binding, so it will have no effect on the market.consumer surplus will decrease, producer surplus will increase, and the deadweight loss will be larger.
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