Can you help me answer this question using topics like competitive market, average and total revenue, profit maximization, shutdown or exit, sunk cost, monopolies, deadweight loss, social cost, public policy, regulation, public ownership, and price discrimination. Around 200 word answer

Topic B Problem: A friend of yours says, "in a capitalist economy, if people are willing to pay a lot for something, then businesses will charge a lot for it." Is your friend's statement always true? If not, when would this statement be false, and why? Topic