This topic contains a solution. Click here to go to the answer

Author Question: You value your economics textbook at $40. Someone else values it at $30, but that person is willing ... (Read 33 times)

sc00by25

  • Hero Member
  • *****
  • Posts: 596

You value your economics textbook at $40. Someone else values it at $30, but that person is willing to pay you $35 for your textbook. Would selling your textbook to this person for $35 be Pareto efficient?


◦ Yes, because you received the maximum amount the other person would have been willing to pay for the textbook.
◦ Yes, the person paid you $35 for the book so his net benefit was -$5, whereas your net benefit was also -$5. This exchange is Pareto efficient because each of you have the same net benefit.
◦ Yes, because both of you are better off as a result of the trade.
◦ No, because even though he was willing to pay more for the book than he valued it at, you wold not receive as much as you value it at, so you would be made worse off.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by sc00by25 on Apr 19, 2019

Swizqar

  • Sr. Member
  • ****
  • Posts: 357
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly




sc00by25

  • Member
  • Posts: 596
Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
Excellent

 

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

For a complete list of videos, visit our video library