When a positive externality exists the socially optimal level of output will be greater than that resulting from a private market.
The output level that takes into account all of the benefits and drawbacks of a transaction, or the equilibrium that would be reached if the results of the market took into account the impact of externalities.
"The ideal distribution of resources in society, taking into consideration all external costs and benefits as well as internal costs and advantages," is how economists define a "socially optimal solution."
The distribution that a charitable social planner chooses, limited solely by the endowment of resources, is the social optimum. In general, the social optimum will not be possible if the social planner's policy tools are constrained.
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Answer:
To maximize revenue based on current capacity, The Stadium Manager should set Premium Price for tickets.
Explanation:
If your aim is to maximize revenue based on the capacity of the stadium, Premium Price is your surest best.
Premium pricing is a type of pricing which involves establishing a price higher than your competitors to achieve a premium positioning.
You will attract the right kind of customers and when you set a premium price, you have raised the bar of expectation from your customers.
This will push the stadium to upgrade their customer service, their operations and delivery.
If this method is carried out properly by establishing club memberships and other marketing incentives, you will retain these premium customers and maximize revenue.
Answer:
Project D
Explanation:
Payback period calculates the amount of time it takes to recover the amount invested in a project.
Pay back period = Cost of project / revenue from project.
For project c, its Pay back period is $30,000 / $5,000 = 6 years
For project d, the Pay back period is $120,000 / $50,000 = 2.4 years
The project with the shorter Pay back period is better
I hope my answer helps you
Answer:
$800 million more
Explanation:
Amount spent each year under the government wheat price-support program = $0.2 × 10 billion = $2 billion
Amount spent each year in an unregulated market for Pakistani wheat = $0.1 × 12 billion = $1.2 billion
Amount spent more each year under the government wheat price-support program than otherwise would have been spent in an unregulated market = $2 billion - $1.2 billion = $800 million
It is common because it is a. book that was written a man name oliver in 1881