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stepladder [879]
4 years ago
9

According to smith, when private individuals are left free to seek their own interests in free markets, they will inevitably be

led to further the public welfare by an "invisible hand"
Business
1 answer:
kodGreya [7K]4 years ago
8 0
<span>This is, in fact, true. Smith believed that private individuals who were left free to seek out their own interests in a free market would eventually be led to further the public welfare by an invisible hand, this was his defense of free markets on the grounds of utilitarianism.</span>
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In each of the following situations, identify if there is a positive or negative externality in play. Explain you answer thoroug
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Answer:

Positive Externality

Explanation:

Externalities are extra side effects to third un-involved party, without any monetary transaction for the same

Positive Externality is the positive side effect to third un-involved party, without any monetary transaction for the same. Negative Externality is negative side effect to third un-involved party, without any monetary transaction for the same.

The Local bride shop has only paid for the road signage facelift. Despite, all the seven other shops sharing strip mall with it also use the sign. This act of local bride shop will have more visibility & other benefits for all the other 7 businesses linked to it, who have not although paid for it. So, the other 7 businesses have a positive extra effect due to local bride shops' act. Hence it is a positive externality for all of them.

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3 years ago
The profit that the vendor makes per day by selling x pretzels is given by the function. P(x) = -0.002x2 + 1.4x - 400. Find the
amm1812

Answer:

350 the number of pretzels that must be sold to maximize profit.

Explanation:

P(x) = -0.002x2 + 1.4x - 400

Differentiating P(x) with respect to dx:

P(x)'=\frac{d(-0.002x2 + 1.4x - 400)}{dx}

P(x)'=-2\times 0.002x+1.4

Putting , P(x)' =0

0=-0.004x+1.4

x=\frac{1.4}{0.004}=350

we get , x = 350

Differentiating P(x)' with respect to dx:

P(x)''=-0.004

P(x)''<0 (maxima)

350 the number of pretzels that must be sold to maximize profit.

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