Answer:
You pay your neighbor $400 to cut the tree down.
Explanation:
You pay your neighbor $400 to cut the tree down.
The amount paid to the neighbor is to be more than the value of the tree as your neighbour values and this will satisfy as per the Coase Theorem which states that amount paid for the damage caused due to negative externality should be more than the value that the person attaches to production of externality.Also, it is to be lower than the cost which the person has to bear because of mango production and thus as a result both gain $100 in the process.
Answer:
I believe its Transfer Payments (or government transfer)
Explanation:
A transfer payment is a redistribution of income and wealth by means of the government making a payment, without goods or services being received in return.
Answer:
5.13%
Explanation:
Given:
Worth of investment today (PV) = $1,000
Investment worth after 6 years (FV) = $1,350
Time period of investment (nper) = 6 Years
It is required to compute annual return (RATE). This can be computed using spreadsheet function =RATE(nper,-PV,FV).
Substituting the values, we get =RATE(6,-1000,1350)
= 5.13%
Present value is negative as it is a cash outflow.
Therefore, annual return is computes as 5.13%.