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nordsb [41]
3 years ago
11

Jack and Jill are the only two residents in a neighborhood, and they would like to hire a security guard. The value of a securit

y guard is $50 per month to Jack and $90 per month to Jill. Irrespective of who pays the guard, the guard will protect the entire neighborhood and charge $120 per month for the service.Suppose Jack earns $4,000 per month and Jill earns $8,000 per month. a. With a proportional tax of 1 percent on income, how much would Jack and Jill pay, and would it be enough to pay for the security guard?
Business
1 answer:
Step2247 [10]3 years ago
6 0

Answer:

Yes their combined contribution of $120 is sufficient to pay the security guard

Explanation:

This is a form of non-rival service that does not get reduced by consumption by one of the parties. The security guard protects the entire neighbourhood.

Also it is a non-excludable service. If one party does not pay he will still enjoy the service.

Based on their income information and the fact that they are taxed 1%

Jack will pay 0.01 * 4,000 = $40

Jill will pay 0.01 * 8,000 = $80

The total sum is 40 + 80 = $120

As the security guard requires $120 to do the job, their contribution is sufficient.

However the value to Jack is $50 and he pays $40 so he has an excess value of $10

Jill gets a value of $90 but pays $80, so she gets an excess value of $10

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3 years ago
In 2015, the city of Berkeley instituted a tax on sugar-sweetened sodas. Suppose that the tax increased the price of a typical s
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Explanation:

Data given in the question

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The options are as follows

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8 0
3 years ago
What is the difference between accounts payable and accounts receivable?
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<u>\:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:</u>

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An HR department at a manufacturing firm wants to ensure that applicants for production jobs provide complete information about
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So also verbal communication would help you access their strengths and properly allocate them to departments where they would be most efficient if selected.

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