Assume that local bread industry is perfectly competitive and faces constant returns to scale.Draw a graph showing the output of bread ( and the price of bread ( )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 . )What will happen to the price of bread? Show this on your graph.(Label it . )

Question

Assume that local bread industry is perfectly competitive and faces constant returns to scale.Draw a graph showing the output of bread (  and the price of bread (  )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  . )What will happen to the price of bread? Show this on your graph.(Label it  . )

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The Answer of Assume that local bread industry is perfectly competitive and faces constant returns to scale.Draw a graph showing the output of bread (  and the price of bread (  )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  . )What will happen to the price of bread? Show this on your graph.(Label it  . )

Assume That Local Bread Industry Is Perfectly Competitive and Faces