Suppose that the buyers in Exercise 3.3 incur a transaction cost of $200 to purchase a car.

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Suppose that the buyers in Exercise 3.3 incur a transaction cost of $200 to purchase a car. This transaction cost is the value of their time to find a car. What is the equilibrium? Is it possible that no cars are sold?

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Microeconomics Theory and Applications with Calculus

ISBN: 978-0133019933

3rd edition

Authors: Jeffrey M. Perloff

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Question Posted: Sep 21, 2024 05:17 AM

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Suppose that the buyers in Exercise 3.3 incur a transaction cost of $200 to purchase a car.

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The price a consumer will pay for a car ofunknown qu...View the full answer

Microeconomics Theory and Applications with Calculus

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