1. For Figure 8-9, demand with zero transaction costs is Q( to the 1st power)D= 50-P and supply is Qs=-7+ 2P. a. Verify all the prices and quantities calculated in the discussion. b. Now assume that intermediaries come from a competitive market with and equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants an intermediary’s services must pay $8 for them. What is the maximum per unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction costs? c. Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers( material needed is TRANSACTIONS AND STRATEGIES: Economics for Management). CENGAGE Learning.
2.Like supermarkets, full –service department stores like Macy’s are generally in decline. What factors might these types of stores have in common behind their declines? How would you determine which were important and which were not?
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