Solved: Provide an explanation for why profits might not be a good, Basic Statistics

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Provide an explanation for why profits might not be a good

1. Provide an explanation for why profits might not be a good indicator for deadweight loss. What about if profits were persistently positive in an industry?

2. Under what circumstances would a large market share identify market power? Under what cir- cumstances is a large market share not a good indicator of market power? [Hint: What is the source of market power?]

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Basic Statistics: Provide an explanation for why profits might not be a good

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