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C any pareto efficient allocation can be supported as

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Unformatted text preview: ectly competitive market economy is Pareto efficient. C. any Pareto efficient allocation can be supported as the Nash equilibrium of a competitive market economy. D. None of the above. 12. Table 5-1 provides data on WTP and WTA among potential buyers and sellers in a simple competitive market. 23 Buyer 1 2 3 4 5 6 7 8 9 10 WTP 1000 900 800 700 600 500 400 300 200 100 Seller 1 2 3 4 5 6 7 8 9 10 WTA 350 450 550 650 750 850 950 1050 1150 1250 Table 5-1 The equilibrium quantity traded in this market is A. 2 units B. 4 units C. 7 units D. 9 units 13. Recall the data from Question 12 above. The equilibrium price is this market is between A. 500 and 550 B. 650 and 700 C. 750 and 800 D. 850 and 900 14. Recall the data from Question 12 above. Social surplus at the equilibrium is A. 1000 B. 1200 C. 1400 D. 1600 15. Recall the data from Question 12 above. “The equilibrium is Pareto efficient”. True of false? A. True. B. False. 24 16. Table 5-2 provides data on WTP and WTA among potential buyers and sellers in a simple competitive market. Buyer 1 2 3 4 5 6 7 8 9 10 WTP 400 800 600 300 1300 1500 1100 700 900 1600 Seller 1 2 3 4 5 6 7 8 9 10 WTA 650 450 1250 1450 750 850 1050 1250 1350 550 Table 5-1 The eq...
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This document was uploaded on 03/03/2014.

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