2. Determine the amount of producer surplus in the following situations: Gordon lists his old electric train set for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid.
2. Determine the amount of producer surplus in the following situations: Gordon lists his old electric train set for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75. After five days of bidding, the final high bid is exactly $75. He accepts the bid.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter18: Auctions
Section: Chapter Questions
Problem 1MC
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![2.
Determine the amount of producer surplus in the following situations: Gordon lists his old electric
train set for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75.
After five days of bidding, the final high bid is exactly $75. He accepts the bid.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbf425c27-2e51-4045-b920-06dc9ba3f5b2%2Faf0e34b2-9498-41ce-98de-d7b363294eff%2Fxj9vg5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2.
Determine the amount of producer surplus in the following situations: Gordon lists his old electric
train set for sale on an online auction. He sets a minimum acceptable price, known as his reserve price, of $75.
After five days of bidding, the final high bid is exactly $75. He accepts the bid.
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