Question

Seller : $(P-C)

Buyer : $(V-P)

I have 4 of these to do so if you could include how its done that would be great!!

Session / Round 2 We are trading again under the roles and values specified for Session 1. There are no changes This round is to let you learn from what happened in the first round. Buyer's Profit Total Profit 800 Table 3: Transactions and Outcomes for Session 1 Round 2 Transaction Price Seller Cost Buyer Seller's Value Profit TOOD 2000 Loeo 800 Teoo 1000 2000 950 2000 1 000 2000 2000 loco 875 1000 800 C000 950 Average Price Value Table 4: Distribution of Types in Session 1 Round 2 Type of Agent Number of Agents Low-Cost Seller High-Cost Seller High-Value Buyer Low-Value Buyer Cost $500 $1500 $2000 $1000 To calculate the average price sum all the prices corn sold for all transactions in the round and then divide it by the number of transactions. Total profit equals buyer profit plus seller profit.

Answer 1

Given,

Price of corn, seller's cost and buyer's profit.

Now,

as you can see that the formula to find buyers profit = buyer's value - price

therefore for the first transaction,

Buyer's profit = 2000 - 1000 = $1000

Similarly,

Seller's profit = price - seller's cost = 1000 - 500 = $500

Total profit = seller's profit + buyer's profit = 1000 + 500 = 1500

In the same way we can calculate for other transactions.

The following table below shows the answer for all the transactions.

Transaction	Price	Seller Cost	Buyer value	Seller's Profit	Buyer's Profit	Total Profit
1	1000	500	2000	500	1000	1500
2	900	500	1000	400	100	500
3	800	500	1000	300	200	500
4	800	500	1000	300	200	500
5	1000	500	1000	500	0	500
6	950	500	2000	450	1050	1500
7	950	500	2000	450	1050	1500
8	1000	500	2000	500	1000	1500
9	1000	500	2000	500	1000	1500
10	500	1500	1000	-1000	500	-500
11	875	500	1000	375	125	500
12	800	1500	1000	-700	200	-500

Now,

Average Price = (sum of the price of all transactions) / total number of transaction

= 10575 / 12

= 881.25