There is a market with 100 people who want to sell their used cars and 100 people who want to buy a used car. it is well known generally that half the cars are lemons and half are plums. the current owner of a car (for sale) knows its quality but none of the prospective buyers know if a given car is a lemon or a plum. the owner of a lemon is willing to accept $500 and the owner of a plum is willing to accept $1,000. the buyers of a lemon are willing to pay $600 and the buyers of a plum are willing to pay $1,200.

(i) given buyers offer a price equal to the expected quality of used cars, how many sales ("trades") will take place in the market, and of whattype of quality (i. e., lemons or plums)?
(ii) what is the maximum amount of consumer surplus created from the sales?

For each example identify the most appropriate ctso

On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 payment in excess of the book value of fisher's share of bowden's underlying net assets. fisher was willing to make this extra payment because of a recently developed patent held by bowden with a 15-year remaining life. all other assets were considered appropriately valued on bowden's books. bowden declares and pays a $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 in cash. although it sold this interest, fisher maintained the ability to significantly influence bowden's decision-making process. prepare the journal entries for fisher for the years of 2017 and 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. do not round intermediate calculations. round your final answers to the nearest whole dollar.)

Apopular low-cost airline, parson corp., has gone out of business. although the service and price provided by the airline was what customers wanted, the larger airlines were able to drive the low-cost airline out of business through an aggressive price war. which component of the competitive environment does this illustrate? a) threat of new entrants b)competitors c) economic factors d) customers d) regulators