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zavuch27 [327]
3 years ago
12

Mary and Cathy are roommates. Mary assigns a $30 value to smoking cigarettes. Cathy values smoke-free air at $15. Which of the f

ollowing scenarios is a successful example of the Coase theorem? a. Cathy offers Mary $20 not to smoke. Mary accepts and does not smoke. b. Mary pays Cathy $16 so that Mary can smoke. c. Mary pays Cathy $14 so that Mary can smoke. d. Cathy offers Mary $15 not to smoke. Mary accepts and does not smoke.
Mathematics
1 answer:
Shtirlitz [24]3 years ago
7 0

Answer:

b. Mary pays Cathy $16 so that Mary can smoke.

Step-by-step explanation:

Coase's theorem suggests that in a situation where a bargaining situation, where there is efficient pareto allocation, economic agents can negotiate and come to a compensation agreement on the loss of welfare.

Pareto Optimal is a state where resources are allocated as efficiently as possible. Any reallocation of resources to improve one individual's situation will necessarily worsen another individual's condition. That is the case in point. Mary has a $ 30 utility for smoking, while Cathy has a $ 15 utility for fresh air. If both are in the same environment, Mary's activity will damage Chaty's usefulness. A deal would be if Mary offered Cathy a reward beyond her usefulness, and was then allowed to smoke. Since Cathy's utility is $ 15, if Mary offers $ 16, Cathy's utility will be greater with Mary smoking than before.

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<span>Given the diagram, where AB and EF are horizontal lines and CB is a vertical line segment. Given that FB : FC = 4 : 3, From the diagram, the coordinate of A is (-10, -8) and the coordinate of C is (-3. -1). We can also see that the coordinate of B is (-3, -8) (since CB is a vertical line means that B is the same x-value as C and AB is a horizontal line means that B is the same y-value as A) Recall that the coordinate of a point dividing a line segment in the ratio m:n is given by (x1 + m/(m+n) (x2 - x1), y1 + m/(m+n) (y2 - y1)) Thus, since FB : FC = 4 : 3, this means that point F divides the line segment BC in the ratio 4 : 3. Thus, the coordinate of F is given by (-3 + 4/(4+3) (-3 - (-3)), -8 + 4/(4+3) (-1 - (-8))) = (-3 + 4/7 (0), -8 + 4/7 (7)) = (-3, -4). Also, given that FB : FC = 4 : 3, this means that point D divides the line segment AC in the ratio 4 : 3. Thus, the coordinate of D is given by (-10 + 4/(4+3) (-3 - (-10)), -8 + 4/(4+3) (-1 - (-8))) = (-10 + 4/7 (7), -8 + 4/7 (7)) = (-6, -4). Therefore, the coordinates of point D is (-6, -4).</span>
5 0
3 years ago
Zach scores a ringer 40, percent of the time that he throws a horseshoe. Let R be the number of throws it takes Zach to score hi
Eduardwww [97]

Answer:

0.1296

Step-by-step explanation:

The desired probability is calculated by using geometric probability distribution having the pdf of

P(X=r)=p*q^r-1 where x=1,2,3,....

The geometric distribution is used because experiment is repeated various number of times until the success is obtained.

Here p is the probability of success which is 0.4 in the given scenario as Zach scores a ringer 40% percent of time

We wish to calculate the probability that Zach throws 555 or more to achieve his first ringer that is

P(R≥5)=1-P(R<5)=1-P(R≤4)

P(R≤4)=P(R=1)+P(R=2)+P(R=3)+P(R=4)

P(R≤4)=0.4*0.6^0+0.4*0.6^1+0.4*0.6^2+0.4*0.6^3

P(R≤4)=0.4+0.4*0.6+0.4*0.36+0.4*0.216

P(R≤4)=0.8704

P(R≥5)=1-P(R≤4)=1-0.8704=0.1296.

So it is 12.96% chance that the Zach throws 555 or more to achieve his first ringer.

5 0
3 years ago
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X+140=300 solve the equation and check your solution ​
julsineya [31]

Answer:

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Step-by-step explanation:

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8 0
2 years ago
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Answer:

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Step-by-step explanation:

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Lyrx [107]

Answer:

28408

Step-by-step explanation:

212x134=28408

5 0
3 years ago
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