what is a compentitive market, and why does it depend on the existence of many buyers...

what is a compentitive market, and why does it depend on the existence of many buyers and sellers?

Expert Solution

Rahul Sunny answered 2 years ago

10. The market for lemons Consider a market in which there are many potential buyers and...

10. The market for lemons Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a plum) or low quality (a lemon). A seller with a low-quality car is willing to sell it for $5,000, whereas a seller with a high-quality car is willing to sell it for $9,500. A buyer is willing to pay $6,000 for a low-quality car and $10,500 for...

how does the annual temperature range depend on latitude? why does the annual temperature range depend...

how does the annual temperature range depend on latitude? why does the annual temperature range depend on latitude?

In a market where there are many price-taking buyers and sellers, there are many possible equilibrium...

In a market where there are many price-taking buyers and sellers, there are many possible equilibrium prices. Each of these prices represents a Nash equilibrium for this market. True or False?

For a market to be competitive, why is it important that there be buyers and sellers...

For a market to be competitive, why is it important that there be buyers and sellers and easy entry and exit?

In the market for college degrees, there are many buyers but only 1 seller. Qd =...

In the market for college degrees, there are many buyers but only 1 seller. Qd = 1000 – 2P. This implies that Price or Private MB = 500 - .5Q. Education has positive externalities. Assume each degree has a $50 value to society. Such that the Social MB = 550 - .5Q. MC = 100. What is the efficient amount for Q and the corresponding P and Total Surplus? Remembering Revenue = PQ, what is the equation for marginal revenue...

In microeconomics, what does the existence of a supply curve imply about producer's market power? Explain...

In microeconomics, what does the existence of a supply curve imply about producer's market power? Explain what causes supply curves to slope upward.

Hi, please help me with this question. What does flank wear depend on and why did...

Hi, please help me with this question. What does flank wear depend on and why did a tool that machined steel 1020 suffered a flank wear greater than one of the same material that machined 4140 steel or aluminum? What does crater wear depend on? If you can give also some resources from which I can find information about the answer. Thank you very much.

Consider a market in which there are many potential buyers and sellers of used cars. Each...

Consider a market in which there are many potential buyers and sellers of used cars. Each potential seller has one car, which is either of high quality (a plum) or low quality (a lemon). A seller with a low-quality car is willing to sell it for $4,500, whereas a seller with a high-quality car is willing to sell it for $8,500. A buyer is willing to pay $5,500 for a low-quality car and $10,500 for a high-quality car. Of course,...

Consider a market for used cars. There are many sellers and even more buyers. A seller...

Consider a market for used cars. There are many sellers and even more buyers. A seller values a high quality car at 800 and a low quality car at 200. For any quality, the value to buyers is m times the value to sellers, where m > 1. All agents are risk-neutral. Sellers know the quality of their own car, but buyers only know that 2/3 of the cars are low quality and the remaining 1/3 of them are high...

For the following functions are they concave or convex and what does that depend on? If...

For the following functions are they concave or convex and what does that depend on? If the answer is possibly both, over what ranges are the functions convex or concave? (a) Y = AKαL 1−α with respect to K? with respect to L? (b) Y = (αKρ + βLρ ) 1/ρ with respect to K? with respect to L? (c) T C = 3Q3 + 2Q2 − Q + 10

Question