Per-unit transaction costs: a. may cause the demand and supply ...

[j.rubin]

Per-unit transaction costs:
 a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents.
  b. refer only to the commission paid to a third-party for each transaction made.
  c. are absorbed by the party seeking the transaction.
  d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.

Question 2

Appendix: Auctions are used in place of markets when the items traded are unique (e.g., a Ming vase or a right to drill for oil). Which of the following examples are typically sold using Vickrey auction methods?
 a. For-sale-by-owner houses
  b. Household furnishings
  c. Items sold in Filene's Basement, with the price discounted after a certain date
  d. Vintage postage stamps

[todom5090]

Answer to Question 1

a

Answer to Question 2

d

[j.rubin]

Thank you

[todom5090]

No problemo