Under these conditions an efficient solution can be reached regardless of the initial assignment of property rights.
Answer:
The first reason why people are willing to pay so much less or lower than the expected value is due to the uncertainty of flipping a heads. Heads may never be flipped.
The Second reason they are willing to pay so much less or lower is because the expected value will rarely reach over $10 because player would have to make it to the 5th flip in order to recoup their investment in which most of the players are unwilling and ready to take that risk.
Explanation:
Saint Petersburg Gambles
The first reason why people are willing to pay so much less or lower than the expected value is due to the uncertainty of flipping a heads. Heads may never be flipped.
The Second reason they are willing to pay so much less or lower is because the expected value will rarely reach over $10 because player would have to make it to the 5th flip in order to recoup their investment in which most of the players are unwilling and ready to take that risk.
I’m not pretty sure about this answer but in my opinion it’s B
Globalization affects all lives across the world with the world being completely connected by it. All of the points given here are valid.
Explanation:
Due to a globalized economy we are able to -
-Buy clothes and items from across the world and get them shipped to us. We also are able to buy things made in different parts of the world.
- The communication between the whole world is now clicks away from each other
- The websites we use are created in other countries sometimes.
-The businesses in one's own country are often foreign businesses.
All of these are things that are happening due to globalization as the world has become completely interconnected and interdependent.
The law of increasing opportunity costs is reflected in a production possibilities curve that is concave to the origin.
