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There are two types of used cars on the market: Lemons and Cherries. Lemons are worth $2000 to sellers and $3000 to buyers. Cherries are worth $4000 to sellers and $6000 to buyers. There are 70 Lemons and 30 Cherries available for sale, and buyers are aware of these numbers. However, buyers cannot tell Lemons apart from Cherries, while sellers know the type of the car they are selling. If a seller does not receive at least the amount the car is worth, he/she will take that car off the market. Buyers will anticipate this and adjust their offered prices accordingly. What is the total surplus generated from used cars? Now assume buyers can tell lemons from cherries what is the total surplus generated from used cars?
1. given the following information on the chinese balance of payments in billions of u.s. dollars answer the questions
assume that you have been appointed as the speaker of the house. you must deliver a speech about the current state of
apple inc. has made a rare fashion miscalculation they have produced 8000 neon green ipods but have sold almost none.
Explain how a franchise could be considered a partnership? what make a franchise agreement simpler than a partnership that you would start with another individual?
Calculate the elasticity of production factors and what conditions must be satisfied by the production function parameters for the returns the scale to be increasing, decreasing or stable?
A hypothetical study examines the operations of a couple of hundreds medical clinics, with the data for amount of expenses for new medical equipment relative to total expenses in particular year(s), and the amount of revenue per physician in subse..
1. Has Dr. Frederick done anything wrong in giving Sandra this assignment?
A monopoly firm faces a demand curve given by the following equation: P = $500 ? 10Q, where Q equals quantity sold per day. Its marginal cost curve is MC = $100 per day. Assume that the firm faces no fixed cost.
Suppose you are the CEO of ClipIt, a paper clip producer. Your firm enjoys a patented technology that allows it to make paper clips faster and at a lower cost than your only rival, FastenIt.
Suppose that a study conducted by the Department of Homeland Security discovered that the average time it took passengers to go through the customs process for international flights arriving at the Atlanta airport was 33 minutes.
Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..
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