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Question 14 1 pts Imagine that we have a single prot maximizing producer who takes prices as given. Imagine that the demand for the good
Question 14 1 pts Imagine that we have a single prot maximizing producer who takes prices as given. Imagine that the demand for the good produced by the producers can be described with P = 24 2Q. Assume the the total cost of the producer is given with C (Q) = %Q Imagine that the producer tries to decide on the level of production taking the expected price into account as the actual price is not known at the time of the decision. Furthermore, assume that the producer chooses to form expectations in a naive manner, i.e., we have f = Pt_1. If the initial price is equal to 9 what do you expect to happen to the error of perception over time? Q Itwill stay at 0 O Itwill be decreasing O Itwill remain constant. but at a value higher than 0 0 it will be increasing
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