Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 31 May 2017 My Price 8.00

zero transaction costs

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?

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Maurice Tutor
(5)
Status NEW Posted 31 May 2017 06:05 PM My Price 8.00

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