The sum is greater than its parts
>If we only look at firm 1, we have a firm that is setting a price exactly equal to each consumers’ willingness to pay.
Seems like we should call this 'conditional WTP', since it's not capturing the absolute WTP from the underlying demand curve.
I'm not sure the right way to from that. It's always conditional/marginal. But yes that would be good to call that out more explicitly in this context
>If we only look at firm 1, we have a firm that is setting a price exactly equal to each consumers’ willingness to pay.
Seems like we should call this 'conditional WTP', since it's not capturing the absolute WTP from the underlying demand curve.
I'm not sure the right way to from that. It's always conditional/marginal. But yes that would be good to call that out more explicitly in this context