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Unformatted text preview: willingness to pay and continuing until all corneas are allocated. revenue= 10+9+.+3 =52 Perfect price discrimination! Scenario 2: monopoly, resource waste. End up selling 5 or 6 corneas, meaning we wasted 2-3 corneas. Scenario 3: competitive equilibrium determine a price all sellers get $p all buyers pay $p all agents are passive equilibrium nothing is left over no agents want to change conjunction; p* =3, price cannot be higher than 3 you are giving the doctor 1 dollar. Scenario 4: Parado optimality. Impossible to move away from this situation without somebody being worse off....
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This note was uploaded on 04/17/2010 for the course LAPS ECON2350 a taught by Professor Barrysmithandtasso during the Spring '10 term at York University.
- Spring '10