Find economic value which can be created by a transaction

Assignment Help Microeconomics
Reference no: EM13205501

The economic value which can be created by a transaction between two people, Ed (seller) and Luis (buyer), is $50 as Ed's opportunity cost of selling is $135 and Luis' valuation of the good is $185. If each gains $25 from this transaction, what clusions can be drawn?

Reference no: EM13205501

Questions Cloud

What are the pros and cons of each method : stems of equations can be solved by graphing, using substitution, or elimination. What are the pros and cons of each method?
Compute the ph of the resulting solution : Assuming all the NH3 dissolves and that the volume of the solution remains at 0.300L , calculate the pH of the resulting solution
What time during the morning is the worker performing : AT what time during the morning si the worker performing least efficiently
What time during the morning is the worker performing : AT what time during the morning si the worker performing least efficiently
Find economic value which can be created by a transaction : The economic value which can be created by a transaction between two people, Ed (seller) and Luis (buyer), is $50 as Ed's opportunity cost of selling is $135 and Luis' valuation of the good is $185. If each gains $25 from this transaction,
How much should be spent on advertising to maximize sales : Using the graph, how much should be spent on advertising to maximize sales? What is the maximum sales level?
Define copper sulfate pentahydrate and ammonia : Which is the limiting reagent in the reaction between Copper sulfate pentahydrate and ammonia?
State the resulting solution is analyzed : What observed rotation is expected when a (7.91x10^-1) M solution of (R)-2-butanol (mw = 74.12 g/mol) is mixed with an equal volume of a 0.740 M solution of racemic 2-butanol, and the resulting solution is analyzed in a sample container that is 1 ..
State the oh buffered in the desired range : He intends to have the pH set to 10.0 . He uses acetic acid /acetate as the buffer system. Is the oH buffered in the desired range. How would you improve on Joe experiment design

Reviews

Write a Review

Microeconomics Questions & Answers

  Solve the partial derivative

Solve the partial derivative

  The probability for a randomly selected borrower

Assume the standard deviation is $3,730 and that debt amounts are normally distributed or what is the probability that the debt for a randomly selected borrower with good credit is more than $18,000?

  Moral hazard incentive problem

The bar discovers that the customers for this promotion are not its usual clientele. Instead, the customers tend be politicians who consume an amazing amount of liquor.

  Find the comparative statics for an increase

Find the comparative statics for an increase in the sales tax, namely y^s/s and p^s/s , and provide an economic interpretation of them. What is the economic interpretation of an increase in the parameter a? You might want to plot the demand functi..

  Intervention of government in market process in the u.s.

Explain why government regulation is needed, citing the major reasons for government involvement in a market economy and justify the rationale for the intervention of government in the market process in the U.S.

  Computing output at shut down point

At a price of $24, should a perfectly competitive firm operate or shut down in a the short run if its TC is given as:

  Explain legacy regarding the federal reserve

Discuss the background of Federal Reserve's Chairman Ben Bernanke in detail including his educational background to his accomplishments to his role in running the Fed. What is his legacy regarding the Federal Reserve?

  Describe how child has already mastered marginal analysis

A two-year-old child is eating raisins one at a time from a large box. Even though the child doesn't understand formal economic theory, he knows when to stop eating because he is full. Describe how this child has already mastered marginal analysis..

  Break-even quantities and operating leverages

Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.

  Draw the two curves relating the capital to labour ratio

There are two goods, Cloth and Food, and two factors of production, labour and capital. Suppose that the production function for each good is "homothetic".

  What are the arguments for using real per capita gni

Among the problems that hinder growth in developing economies are poor infrastructure, lack of financial institutions and a sound money supply, a low saving rate, poor capital base, and lack of foreign exchange. Explain how these problems are inte..

  Illustrate the black market for internet access

Illustrate the black market for internet access, including the implicit supply schedule, the ceiling price, the black market supply and demand, and the highest feasible black market price.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd