Answer:
1. Private Good: A snow cone
2. Public Good: A community fireworks display
3. Common Resource: An Alaskan king crab
4. Club Good: Satellite Television
Explanation:
Goods can be categorized into four distinct categories as show above. This distinction is based mainly on two things:
A. Excludability: Whether others can be prevented from consuming them.
B. Rivalrousness: Whether consumption reduces the availability for consumption by others.
1. Private Goods: They are both excludable and rivalrous. They have to be purchased in order to be consumed. Anyone who cannot afford it, is excluded from consuming it. Similarly, the purchase of it by one person reduces the availability for another person, proving rivalry.
2. Public Goods: They are both non-excludable and non-rival. Anyone can consume it and one person’s consumption does not reduce what is available for another person.
3. Common Resource: They are non-excludable but are rival products. They are available to be utilized by anyone but one person’s consumption will reduce what is available for another person.
4. Club Goods: These are excludable but non-rival goods. Individuals can be prevented from consuming them if they don’t purchase it, but one person’s consumption won’t impact the consumption of another person.
The criterion of abnormality that is absent from the given
scenario above is personal discomfort. Personal discomfort is present when an
individual is experiencing an emotional reaction in which is caused by factors
such as stress that would lead to anxiety or discomfort.
Answer:
between 2010 and 2015 he only grown $50.
Explanation:
That why he come from $110 to $160. In the middle of the years he only grown $50.
I hope it help you understand.
Answer:
The value of the levered firm $31,125
Explanation:
Value of Firm is the value of present value of expected future earning. It is calculated by dividing the earning after tax by the cost of capital while considering that the business will operate for the foreseeable future time.
EBIT $4,250.00
Less
Interest <u>$0.00 </u>
EBT $4,250.00
Tax 35% x 4250 <u>$1,487.50</u>
EAT <u>$2,762.50</u>
Cost of Capial 10%
Value of firm = EAT / Cost of Capital = $2,762.5 / 10% = $27,625
Debt after tax = $10,000 x ( 1 - 0.35 ) = $6,500
Value of Equity = Value of firm - Debt after tax = $27,625 - $6,500 = $21,125
Value of debt = $10,000
Value of levered Firm = $21,125 + $10,000 = $31,125
