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?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter8: Perfect Competition

Section: Chapter Questions

Problem 1SCQ: Firms ill a perfectly competitive market are said to be price takers that is, once the market...

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Firms ill a perfectly competitive market are said to be price takers that is, once the market determines an equilibrium price for the product, firms must accept this price. If you sell a product in a perfectly competitive market, but you are not happy with its price, would you raise the price, even by a cent?
QUESTION 6 The profit-maximizing point for suppliers in a competitive market is where MR = MC. True False
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