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 53 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

helenmarkerine

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Summation of Heart Sounds, Fixed Splitting of S2 Summation of Heart Sounds, Fixed Splitting of S2
The Primate order displays a diversity of ways of moving around. The Primate order displays a diversity of ways of moving around.
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Physical features of Sjögren's syndrome. Source: Ways Sjogren's Syndrome May Affect the ... Physical features of Sjögren's syndrome. Source: Ways Sjogren's Syndrome May Affect the ...
Protein methylation protects proteins in two ways Protein methylation protects proteins in two ways
Cost of Laptops Cost of Laptops
Video: Mechanisms of capillary exchange (transcytosis & bulk flow)

For a complete list of videos, visit our video library