True or False & Explain (a) In a general equilibrium analysis, when individual demand functions are not continuous, an equilibrium in which aggregate demand equals aggregate supply does not exist. (b) A second-price sealed-bid auction is, in general, worse for the seller than a first-price sealed-bid format because in the former case her revenue equals only the second-highest bid while in the latter case she gets the highest bid.

True or False & Explain (a) In a general equilibrium analysis, when individual demand functions are not continuous, an equilibrium in which aggregate demand equals aggregate supply does not exist. (b) A second-price sealed-bid auction is, in general, worse for the seller than a first-price sealed-bid format because in the former case her revenue equals only the second-highest bid while in the latter case she gets the highest bid.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.12P

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