This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why was a fixed price of 50 not the best way of allocating used laptops? Suggest other possible ways ... (Read 52 times)

mia

  • Hero Member
  • *****
  • Posts: 564
on: Jun 29, 2018
Why was a fixed price of 50 not the best way of allocating used laptops? Suggest other possible ways of distributing the laptops that would be efficient.
 
  What will be an ideal response?

Question 2

What is an imperfectly competitive industry?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bfulkerson77

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jun 29, 2018
Answer to Question 1

At the price of 50, the quantity of laptops demanded far exceeded the quantity supplied. This excess demand led to long queues and a stampede at the Richmond International Raceway. One of the other ways of allocating the laptops would have been to use flexible prices. Those who valued the laptops the most would have paid the most for them. An auction would have raised revenue and allocated the laptops better than a fixed price. Henrico County could also have used a random lottery to allocate the used laptops. Those who got the laptops through the lottery could have then sold it to anyone who valued them more than they did. The lottery would not, however, lead to an efficient outcome if people who won the lottery were not allowed to sell the laptops.

Answer to Question 2

An imperfectly competitive industry is an industry in which single firms have some control over the price of their output.


mia

  • Member
  • Posts: 564
Reply 2 on: Jun 29, 2018
Wow, this really help

okolip

  • Member
  • Posts: 362
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

The four ways in which animals exchange heat with the environment are radiation, evaporation, convec The four ways in which animals exchange heat with the environment are radiation, evaporation, convec
A fixed action pattern as an example of innate behaviour. A fixed action pattern as an example of innate behaviour.
Ways to prevent heat waves Ways to prevent heat waves
Different ways to test hypotheses Different ways to test hypotheses
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Video: Coronary Heart Disease

For a complete list of videos, visit our video library