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LaSilva Moneymaker writes a dally investment newsletter, with bulletins as needed during the trading day. Her newsletter has one of the highest success rates in picking stocks that will outperform the market. Her subscribers receive their newsletters be e-mail, along with any needed bulletins. The primary cost of producing the newsletter is Ms. Moneymaker's time. The marginal cost of an additional subscriber is zero. a. If the demand curve for the newsletter subscription is an shown in the preceding figure, what is the efficient quantity of subscriptions? b. If Ms. Moneymaker charges $250 per subscription, shade the loss in total surplus in the preceding figure. c. How is the market for Ms. Moneymaker's newsletter similar to a natural monopoly? d. How could the government reduce the inefficiency in this market?

 

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