A corn farmer is considered a free rider if he chooses not to join the national interest group his fellow farmers created, yet still reaps the benefits of the tax incentives the group lobbied for and won.
The free rider problem is an economic concept of a market failure that occurs when people or individuals are benefiting from resources, goods or services that they do not pay for. In our case, the corn farmer is benefiting from the tax incentives the group lobbied for, yet he or she made zero input or effort to contribute to the groups agenda in getting tax incentives. <span />
Answer:
r = 0.139 or 13.9%
Option e is the correct answer
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
r = 0.04 + 0.9 * (0.15 - 0.04)
r = 0.139 or 13.9%
Answer:
Correct option is B.
The net benefit of the activity you would have chosen if you had not taken the course
Explanation:
Your opportunity cost of taking this course is <u>the net benefit of the activity you would have chosen if you had not taken the course
</u>
Opportunity cost is what you must sacrifice when you choose an activity. By taking this course, you are sacrificing the benefit you could have obtained from the activity you would have chosen if you had not taken the course.
The demand shifter is the expected increase in the price of the lab coats.
The equilibrium price and quantity would increase.
<h3>What would happen to equilibrium price and quantity?</h3>
When there is an expectation of an increase in the price of lab coats, people would want to buy more lab coats now to avoid buying lab coats at a high price next week.
As a result, the demand curve for lab coats shifts to the right. The equilibrium price and quantity would increase.
Please find attached the required diagram. To learn more about the demand curve, please check: brainly.com/question/25140811
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