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I 1 point > Carlos is risk-neutral and has an ancient farmhouse with great character for sale in Slaterville Springs. His reservation price for the

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I 1 point > Carlos is risk-neutral and has an ancient farmhouse with great character for sale in Slaterville Springs. His reservation price for the house is $130,000. The only possible local buyer is Whitney, whose reservation price for the house is $160,000. Suppose Whitney buys the house from Carlos. Total economic surplus will be $ thousand. Carlos is risk-neutral and has an ancient farmhouse with great character for sale in Slaterville Springs. His reservation price for the house is $130,000. If Carlos hires a realtor, he knows that the realtor will put him in touch with an enthusiast for old farmhouses who is willing to pay up to $300,000 for the house. Carlos and this person negotiate and agree on a price of $250,000. Realtors charge a commission of 4 percent of the selling price (assume, unrealistically, that realtors do not have any opportunity costs). Total economic surplus will be 55 thousand. Carlos is risk-neutral and has an ancient farmhouse with great character for sale in Slaterville Springs. His reservation price for the house is $130,000. If Carlos hires a realtor, he knows that the realtor will put him in touch with an enthusiast for old farmhouses who is willing to pay up to $300,000 for the house. Carlos and this person negotiate and agree on a price of $250,000. Carlos will pay the realtor's 4% commission. What will Carlos's economic surplus be? Total economic surplus for Carlos will be $ thousand

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