5. Suppose the market is perfectly competitive. The market equilibrium market price P = $20. A consumer's willingness to pay (WTP) is 30 - q. how much will this consumer buy and why? A firm's MC 2q. What is the profit maximizing quantity this firm will produce? can you tell if this firm is making positive, negative, or zero economic profit?
5. Suppose the market is perfectly competitive. The market equilibrium market price P = $20. A consumer's willingness to pay (WTP) is 30 - q. how much will this consumer buy and why? A firm's MC 2q. What is the profit maximizing quantity this firm will produce? can you tell if this firm is making positive, negative, or zero economic profit?
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.1P
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