2.2 You are a manager at a firm like Stanford Chemicals, one of many perfectly competitive producers of hyaluronic acid (used in eye cream). The marginal cost of producing a pound of hyaluronic acid is given by MC = 5.0 + 0.5Q. The equilibrium price of hyaluronic acid is $25 per pound 50 percent of the time and $15 per pound the other 50 percent.

Suppose that with no forecast of demand, you produce the quantity where E3MR4 = MC.

What is the maximum price that you are willing to pay for a perfect forecast?