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Business, 12.07.2021 19:40 mommy562

There are four consumers willing to pay the following amounts for an electricâ car: Consumerâ 1: Consumerâ 2: Consumerâ 3: Consumerâ 4: â$â60,000 $50,000 $90,000 $30,000 There are four firms that can produce electric cars. Each can produce one car at the followingâ costs: Firmâ A: Firmâ B: Firmâ C: Firmâ D: â$30â,000 â $80â,000 â $â40,000 â $â50,000 Each firm can produce at most one car. Suppose we wanted to maximize the difference betweenâ consumers' willingness to pay for electric cars and the cost of producing thoseâ cars; thatâ is, we wanted to maximize social surplus. We should produce nothing electric cars. Why is the equilibrium price in this market $50,000? A. At this price, the quantity demanded (three cars) equals the quantity supplied (three cars) B. At this price, three consumers are willing to buy an electric car and three firms are willing to sell an electric car C. At $50,000, three consumers have reservation values equal to or above $50,000 and three firms have reservation values equal to or below $50,000 D. All of the above.

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