1 for figure demand with zero transactions costs is q1d 50

Reference no: EM13375693

1. For figure demand with zero transactions costs is Q¹_D= 50 - P and supply is Q_s=-7 +2P.

a. Verify all of the prices and quantities calculated in the discussion.

b. Now assume that intermediaries come from competitive market with an 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 $8 transaction costs?

c. Does your answer to question 2A change if buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers?

2027_Demand with zero transactions costs.png

944_Demand with zero transactions costs1.png

2. What are the highest and lowest payments from the writer that the beekeeper farmer team will accept for the sixth day? Assuming that the farmer can dispose of the $7 from the writer as she wishes, what range of payments will the beekeeper accept? Assuming that the beekeeper gets that amount, what range of payments will the farmer accept? (Remember that negative payments are also possible.) Answer the same questions for the fifth day.

3. Some fields have large enough quantities of both oil and natural gas that coordinator must be achieved for the production of both, rather oil alone as in our examples. Will fields with both oil and gas have greater difficulties in unitization than fields with oil or gas alone? Explain

Reference no: EM13375693

Questions Cloud

Q1-you are on the board of directors of a nonprofit art : q1-you are on the board of directors of a nonprofit art museum supported by donations from wealthy members of the

Write a short essay on the use of economic principles to : write a short essay on the use of economic principles to analyse agricultural and environmental problems.choose a

Now assume that the cigarette industry is perfectly : now assume that the cigarette industry is perfectly competitive and that cigarettes are identical. we also assume that

Create a demand schedule and a supply schedule for your : create a demand schedule and a supply schedule for your product.using these schedules draw a demand curve and a supply

1 for figure demand with zero transactions costs is q1d 50 : 1. for figure demand with zero transactions costs is q1d 50 - p and supply is qs -7 2p.a. verify all of the prices

Question cash flow budgetingusing the following information : question cash flow budgetingusing the following information complete the cash flow budget for the months of january

Question linear programmingcomplete the linear programming : question linear programmingcomplete the linear programming matrix at the end of the question with the appropriate

Question 1place your answers in the table provided at the : question 1.place your answers in the table provided at the end of the question1. use the following table to produce a

Questionplace your answers in the table provided at the end : questionplace your answers in the table provided at the end of the questiona farmer expects to have three activities on

User Account

All Pages