Below is a table showing the maximum amount five potential buyers are willing to pay for a car.

a) What is the quantity demanded if cars sell for $10,000 each?
b) Under conditions of perfect competition, how many cars are bought if the marginal cost of producing a car is $25,000?
c) How many cars are bought if the marginal cost of producing a car falls to $20,000?


Answer:
a) 5
b) 3
c) 4

Economics

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