The high transaction costs associated with a barter system refers to: Answer a. The fact that, often times, these exchanges are taxed by governments b. The risk associated with having to carry an inventory of goods to trade c. The high cost associated with finding someone with whom to exchange d. The cost of drawing up complete contracts

The high transaction costs associated with a barter system refers to: Answer a. The fact that, often times, these exchanges are taxed by governments b. The risk associated with having to carry an inventory of goods to trade c. The high cost associated with finding someone with whom to exchange d. The cost of drawing up complete contracts

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter15A: Auction Design And Information Economics

Section: Chapter Questions

Problem 2.1CE

See similar textbooks

Similar questions

Which of the following is correct a. Companies should always take the discount to pay suppliers earlier. b. If the firm can borrow below nominal cost of trade credit, is should take the discount and pay early c. If the cost of borrowing is lower than the effective cost of trade credit, the firm should take the discount and pay early d. If the cost of borrowing is higher than the nominal cost of trade credit, then the firm should take the discount and pay early e. Firms should always decline the discount to pay early and wait until last day of credit period to pay suppliers.
Given a QD = 100 – 2P and QS = 6P – 20 If P1 = 10, compute the QD , and QS. Identify the economic effect at this price.
Forward contracts are: a. Contracts usually involving the exchange of a commodity or financial instrument. b. Easily resold c. Always standardized d. An agreement between more than two parties
Foreign exchange risk or exchange rate risk is a financial risk that occurs when a financial deal is denominated in a currency other than that of the base currency of the company. Explain the following types of risks that international firms are exposed to:a. Transaction riskb. Translation riskc. Economic riskFor each of the risks explained above, state three (3) ways of mitigating them.
Match the statements with the appropriate definition. Not all statements will be used. Word bank in images Barter Double coincidence of wants Money
It is rational for someone who wants to sell a lemon to offer the buyer a money-back guarantee. explain True False
Suppose that a large discount retailer with a lot of purchasingpower in a supply chain requires that all suppliers incorpo-rate a new information system that will reduce the cost of placing orders between the retailer and its suppliers as wellas between the suppliers and their suppliers. Suppose alsothat order quantities and lead times are related; the smallerthe order quantity the shorter the lead time from suppliers.Assume that all members of the supply chain use a continu-ous review system and EOQ order quantities. Explain the im-plications of the new information system for the supply chainin general and the inventory systems of the supply chainmembers in particular
Jiffyburger, a fast-food outlet, sells approximately 8,000 quarter-pound hamburgers in a given week. To meet that demand, Jiffyburger needs 2,000 pounds of ground beef delivered to its premises every Monday morning by 8:00 AM sharp.As the manager of a firm that sells ground beef, what problems would you anticipate if you were to supply meat to Jiffyburger through spot exchange?
Doctors often charge patients different amounts. What implications does this have for exchange efficiency? Explain and graph
Please no written by hand A reserve price is a minimum price set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer. If only one bidder values the item at or above the reserve price, that bidder pays the reserve price. An auctioneer faces two bidders, each with a value of either $186 or $248, with both values equally probable. Without a reserve price, the second highest bid will be the price paid by the winning bidder. The following table lists the four possible combinations for bidder values. Each combination is equally likely to occur.
Sunk Cost - Peter Takesha, the manager of testing services at a medical diagnostics firm, purchased a new lab testing machine last year for $30,000. This year a new ma-chine, which is faster and more reliable than Peter's current model, is on the market. In deciding whether to purchase the new machine, should Peter consider how much he paid for the old ma-chine? Should he consider the value of the old machine in the used equipment market?
David wants to auction a painting, and there are two potential buyers. The value for eachbuyer is either 0 or 10, each value equally likely. Suppose he offers to sell the object for $6, and the two buyers simultaneously accept or reject. If exactly one buyer accepts, the object sold to that person for $6. If both accept, the object is allocated randomly to the buyers, also for $6. If neither accepts, the object is allocated randomly to the bidders for $0. (a) Identify the type space and strategy space for each buyer. (b) Show that there is an equilibrium in which buyers with value 10 always accept. (c) Show that there is an equilibrium in which buyers with value 10 always reject.