--%>
Assignment Help - homework help

Lowest possible price in transaction Costs

Is the assertion such that "Everyone all the time buys everything at the lowest possible price" right? Have you paid more than you had to for any good yet, after permitting for all transaction costs?

E

Expert

Verified

No and yes, correspondingly. (Students will suggest the following sorts of illustrations that are refuted here.)

Illustration: After a search I purchased a Toro lawnmower of $450. The after that day similar mower was on sale for $375. So, did I pay too much?  At the instance you made the purchase the response was no. You had determined that prospective monetary savings from additional search would have exceeded the expected transaction costs acquired; this was cheapest at $450. Illustration: I can make popcorn at much lower monetary cost than its price into a theater. Refutation The cost of popcorn should be lower in the theater for those who buy this than would be the cost of going home to make this, and into the process, missing the movie.

   Related Questions in Microeconomics

  • Q : Wage Discrimination-supply labor curve

    The employer with monopsony power which as well had the capability to wage discriminate perfectly would confront the marginal factor cost of the labor curve: (i) Similar to the supply of labor curve it faces. (ii) Lower than the supply of labor curve it faces. (iii) H

    		•
  • Q : Problem on labor monopsonist Can

    Can someone please help me in finding out the accurate answer from the following question. The labor monopsonist will hire labor up to the point where marginal: (i) Revenue product of the labor equivalents the wage. (ii) Resource c

    		•
  • Q : Maximize profit by marginal revenue and

    Prohibition Corporation’s very famous St. Valentine’s Day software is going within version 6. The very first point Prohibition requires to classify in its quest to maximize profit is the: (1) point e. (2) point f. (3) point g. (4) point h.

    		•
  • Q : Contradiction of the law of diminishing

    Can someone help me in finding out the right answer from the given options. Which of the following below seems the contradiction of the law of diminishing marginal utility? (1) Ken enjoys his 13th beer of the evening more than his initial. (2) Joan recognizes that her

    		•
  • Q : Determine price when quantity demand

    If the demand for a good is price elastic, in that case the percentage change in quantity demanded into response to a specified change within price is: (1) greater than the percentage change in price. (2) positively related to the cha

    		•
  • Q : Demand of various vegetable why demand

    why demand change of onion in during one week due to change in it's price?

    		•
  • Q : Question on Demand-Supply curves Assume

    Assume that the market for cigarettes in a specific town has the given supply and demand curves: QS = P; QD = 50 − P, here the quantities are evaluated in thousands of units. Assume that the town council requires raising $300,000 in revenue

    		•
  • Q : Competitive Prices for selling This

    This purely-competitive producer’s generic bricks presently sell for: (i) $60 per thousand. (ii) $70 per thousand. (iii) $80 per thousand. (iv) $90 per thousand. (v) $100 per thousand.

    Q : Problems regarding Attributes of Goods

    I have a problem in economics on Problems regarding Attributes of Goods. Please help me in the following question. The intrinsic characteristics which make or detract from the satisfaction derived from consuming a good are termed as: (1) Attributes. (2) Factors. (3) U

    		•
  • Q : Analytic Time-The Short Run I have a

    I have a problem in economics on Analytic Time-The Short Run. Please help me in the following question. Economists classify a time-period in which at least one resource is fixed as: (i) Short run. (ii) Long run. (iii) Production period. (iv) Profit period.