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Distribution of Hypothetical Minimum Prices by Number of Bids Canvassed No. Of Probability of Minimum Price of Expected Marginal Prices Minimum Gain Searched $2.00 $3.00 Price 1 5 5 $250 2 .75 .25 225 25 3 .875 .125 2.125 .125 4 .9375 .0625 2.0625 .0625 5 96875 .03125 2.03125 .03125 6 984375 .015625 2.015625 .015625 Innite [.0 0.0 2.03 Source: George Stigler. \"The Economics of Information,\" Journal ofPalin'mt Economy, 1961. 1. Why do tourists pay more for commodities purchased than natives? 2. Show that workers search more in Gwent than Gwynedd. [n Gwent, wages are evenly distributed between 10 and 20 dollars while in Gwynedd they are evenly distributed between 25 and 30 dollars