Assume that the local bread industry is perfectly competitive and faces constant returns to scale.Draw a graph showing the output of bread (QC)and the price of bread (PC)in a competitive market.Suppose that a monopolist buys all of the independent bread companies in the local area.What will happen to the output of bread? Show this on your graph.(Label it QM.)What will happen to the price of bread? Show this on your graph.(Label it PM.)
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