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?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.1P

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