We appreciate your visit to 1 Suppose there is a market for Pokemon trading card packets and each packet contains a random combination of potentially valuable cards Sellers offer packets. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
If buyers and sellers value the packets equally, there will be sales for all baskets displayed. If buyers value the packets at a premium, sales will occur for baskets within the range where the premium makes the purchase worthwhile. To ensure sales from every basket, the minimum premium should cover the entire potential value range.
In this scenario, there is a market for Pokemon trading card packets, where sellers use X-ray machines to determine the value of the cards inside each packet. Buyers, however, are unaware of the value and only know that it is uniformly distributed between $50 and $350.
A) If buyers and sellers value the packets equally, meaning they see them as worth their market value, then there will be sales for all the baskets displayed by the sellers. This is because the buyers are willing to pay the market value for the packets, regardless of the potential value inside.
B) If buyers value the packets more than the market value, say at a premium of 20% due to the enjoyment they get from playing the game, sales will occur for the baskets within the range where the premium still makes the purchase worthwhile. For example, if a packet has a potential value range of $50-$75, buyers would be willing to pay up to 20% more, or $60-$90, for it.
C) To ensure sales occur from every basket, meaning buyers are willing to purchase packets from the entire range of $50-$350, the minimum premium on the buyer's evaluation of the packets should be enough to cover the potential value range. For example, if a packet has a potential value range of $50-$350, the minimum premium should be at least $300 (the difference between the maximum and minimum value) to ensure buyers are willing to purchase it.
To know more about sales visit
https://brainly.com/question/33862102
#SPJ11
Thanks for taking the time to read 1 Suppose there is a market for Pokemon trading card packets and each packet contains a random combination of potentially valuable cards Sellers offer packets. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
