Homework: Perfect Competition Part 1 of 4

Homework: Perfect Competition and The Invisible Hand (Ch. 7) O Part 1 of 4 Question 1 Score: O of 1 point Consumer 4: $20,000 Save There are four consumers willing to pay the following amounts for an electric car: Consumer 1: Consumer 2: Consumer 3: $60,000 $40,000 $90 There are four firms that can produce electric cars. Each can produce one car at the following costs: Firm A: $60,000 Each firm can produce at most one car. Firm B: $20,000 Firm C: $30,000 Firm D: $40,000 Suppose we wanted to maximize the difference between consumers' willingness to pay for electric cars and the cost of producing those cars; that is, we wanted to maximize social surplus. We should produce electric cars. (Enter your response as an integer.) Enter your answer in the answer box and then click Check Answer.