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Title: Like supermarkets, full-service department stores like Macy’s are generally in decline. What factors might these types o

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2. Like supermarkets, full-service department stores like Macy’s are generally in decline. What factors might these types of stores have in common behind their declines? How would you determine which were important and which were not? 

                                                 

16. Demand with zero transaction costs is Q1D = 50 – P and supply is Qs = -7 + 2P.

 a. Verify all of the prices and quantities calculated in the discussion.

 b. Now assume that intermediaries come from a competitive market with an equilibrium             price of $8 per unit for their services, that is, any buyer or seller mum per unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction costs?

c. Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary but sellers offer to rebate part of that expense to buyers?


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Title: Like supermarkets, full-service department stores like Macy’s are generally in decline. What factors might these types o

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...permarkets, full-service department stores like Macy’s are generally in decline. What factors ...

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Full Answer with Chart - Competition and Strategy (1).doc  (69K)

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