Question
(A) Explain what happens to observed prices in posted offer and double auction markets as the number of sellers drops to 2. And draw a
(A) Explain what happens to observed prices in posted offer and double auction markets as the number of sellers drops to 2.
And draw a diagram that shows what happens in Part (A).
(B) Explain what happens in these two markets as the number of sellers drops to only one monopoly seller. And draw a diagram that shows what happens in Part (B).
(C) Explain why part (B) illustrates the first experimental principle.
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Fundamentals of Managerial Economics
Authors: Mark Hirschey
9th edition
324584830, 978-0324588781, 032458878X, 978-0324584837
