You are at a trading card convention, and observe that for a certain card, a dealer is willing to buy the card for $100, and sell the card for $120. At the same convention, a different dealer quotes a BID-ASK spread of $125-$140 for the very same card. Which statement is false: a. There is an arbitrage opportunity at the convention.
b. The market for trading cards is an inefficient market.
c. If the dealers ran into each other, they would happily trade with each other.
d. If you had to pay a 2% tax when you bought the card, you could not make a profit from this situation after taking transactions costs into account.

Nellie lumpkin, who suffered from dementia, was admitted to the picayune convalescent center, a nursing home. because of her mental condition, her daughter, beverly mcdaniel, signed the admissions agreement. it included a clause requiring the par- ties to submit any dispute to arbitration. after lumpkin left the center two years later, she filed a suit against picayune to recover damages for mistreatment and malpractice. [covenant health & rehabilitation of picayune, lp v. lumpkin, 23 so.2d 1092 (miss. app. 2009)] (see page 91.) 1. is it ethical for this dispute—involving negligent medical care, not a breach of a commercial contract—to be forced into arbitration? why or why not? discuss whether medical facilities should be able to impose arbitration when there is generally no bargaining over such terms.

Acoase solution to a problem of externality ensures that a socially efficient outcome is to

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?