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- Using an Edgeworth box, illustrate and explain the concept of Pareto efficiencyStyles In an auction, potential buyers compete for a good by submitting bids. Adam Gallinsky, a social scientist from NWU, compared eBay auctions in which the same good was sold. He found on average that, the higher the number of bidders the higher the sales price. For example, in two separate auctions of identical IPods, the one with the higher number of bidders brought the higher sales price. According to Gallinsky, this explains why smart sellers set absurdly low opening prices (the lowest price the seller will accept), such as 1 cent for a new IPod. Use the concept of consumer and producer surplus to explain this reasoning.What is agent theory?
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- How is the first mover advantage related to schelling's paradox of commitment. {note please do not copy paste any article from Google I allready complaint about it}In the economy, is there only one efficient combination of goods?Explain how the theory of absolute advantage conflicts with the theory of mercantilism