Suppose that the demand and supply curves for a market can be represented by the following equations: 

Demand:           Q = 60 – 4P 

Supply:               Q = 2P 

If she does not incur any fixed costs, what is Cary’s total profit?

Suppose that Cary’s Car Wash is the only car wash in its suburb and faces the following demand schedule for car washes per hour. 

Which of the following scenarios is least likely to involve market failure due to the existence of private information?

Which of the following statements best describes a perfectly competitive market?