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Unformatted text preview: Firm A: $30,000 Firm B: $60,000 Firm C: $40,000 Firm D: $20,000 Each firm can produce at most one car. (a) What is the efficient number of electric cars? (b) Which firms should produce those cars? (c) Which consumers should purchase those cars? (d) How large is the maximum total surplus? (e) Show that if the price is $45,000 supply will equal demand. (f) Which firms will produce an electric car if the price is $45,000? (g) Which consumer will buy an electric car when the price is $45,000? (h) Calculate consumer, producer surplus, and the sum of consumer and producer surplus when the price is $45,000. (i) What is the point of this question? 3. Answer Question 6 on page 156 in the 5 th edition of Mankiw. 4. Answer Question 7 on page 156 in the 5 th edition of Mankiw....
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This note was uploaded on 02/28/2012 for the course ECON 200 taught by Professor Vincent during the Fall '08 term at Maryland.
- Fall '08