Suppose that the buyers in the previous question incur a transaction cost of $800 to purchase a

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Suppose that the buyers in the previous question incur a transaction cost of $800 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 sell?

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Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

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Question Posted: Nov 12, 2018 07:37 AM

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Suppose that the buyers in the previous question incur a transaction cost of $800 to purchase a

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

Microeconomics

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