7. Compared to the market for cars, the market for vintage buttons has fewer buyers and sellers....

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7. Compared to the market for cars, the market for vintage buttons has fewer buyers and sellers. Social surplus is likely to be higher in the market for cars than in the vintage button market. Is it then correct to assume that the outcome in the car market is Pareto efficient while in the vintage button market it is not? Explain.

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Macroeconomics

ISBN: 9780134492056

2nd Edition

Authors: Daron Acemoglu, David Laibson, John List

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