Then around 150 will be made.
Why not 209?
*200
Lower incentive.
Why is this firm throwing away $250?
Are you assuming an arbitrary opportunity cost?
Like where did you get this idea
This is why costs matter
The incentive to produce more is gone, so they produce less.
Except they don’t
We’re talking about a specific example, not a model
So answer the specific question
Except they do, they're looking to get as much profit as possible. A artificially low profit ends up reducing the amount produced.
Why is the firm throwing away $250
Nnnnope
You’re just wrong
How far are you in Econ
250?
What’s the highest level class you’ve taken
Shut the fuck up
God damn y’all are annoying
Yes 50*5=$250
50 X 5?
Where is this 50 coming from?
You said the market would produce 150 for a demand of 200
Go to the economics chat with this
Yeah because of the price control
The previous price was $20.
K, why
Because **there is a lower incentive to produce as a result of lower prices**
Why?
> as a result of lower prices
Why will the market not fulfil your demand
Specifically why
Because the price is not correct.
Why specifically does this firm decide to stop production?
There's too little being produced with higher demand.
Why are they leaving $250 on the table
I don't see where this 250 is coming from
Lol
Ok, the market demands 200
