Answer:
everyone is willing to pay the taxes to receive the benefits.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
A Lindahl equilibrium can be defined as an economic state in which there is a production of an optimal quantity of public goods and the cost of these goods is shared in a fair manner among everybody. It was developed by Erik Lindahl.
In a Lindahl equilibrium everyone is willing to pay the taxes to receive the benefits.
I guess the best option is perceived risk.
When Kia Motors offers a 10-year, 100,000 mile warranty for the Kia Soul automobile, its strategy is to reduce consumers' perceived risk and encourage purchases.
Answer:
E. Licensing agreement
Explanation:
A licensing is a business contract between two parties the licensor (the seller of the license) and the licensee (the buyer). In this type of agreement, a licensor allows the licensee the right to produce and sell goods, use a brand name or trademark owned by the licensor. The licensee pays royalties to the owner in exchange for these agreement. A licencing agreement usually limits the capacity of the lincensor in that it state clearly the capacity to which the agreement extends
Answer:
The entrepreneur should start the new business.
Explanation:
The reason is that the total cost of the competitor is at $8 which includes $7 variable cost per unit and $1 fixed cost. Whereas on the other hand, the total cost $6 of the new business is composed $5 and $1 assumed fixed cost because the only cost we are provided is variable cost. This shows that the company has a competitve advantage of $1 in controlling the cost of the product. So the company must start the new business as the new business has better chances to attract customers and form relations with new customers depending upon the price differences which the competitor is unable to do so.