The diagram below illustrates a market in which a monopolist takes control and sets a price above the competitive level.
The price charged by the monopolist is OS. If the market had been competitive,the price would have been OR. Under monopoly, the amount buyers spend on the product has increased by
1 )
RSTY.
2 )
OS multiplied by OW.
3 )
RSTU.
RSTY minus WYUV.
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