The answer is A welfare rules
A free rider is option(b) i.e, Someone who consumes a public good but does not pay for it.
<h3>What is meant by the free rider?</h3>
A free-rider problem is a form of market failure that happens when those who use resources, public commodities, or communal services underpay for them or do not pay for them at all. Free riders are an issue because they might still access or utilize the goods even though they aren't paying for them.
For instance, soliciting donations in a museum or garden. The donation sums would assist in paying for the garden/museum even if there would still be free riders.
Free riding hinders traditional free-market techniques of producing and consuming goods and services. Because individuals can still benefit from a shared resource even if they don't participate, free riders have no reason to do so.
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The term "Ceteris paribus" means the notion that all variables except those under immediate consideration are held constant for a particular analysis.
<h3>
What is Ceteris paribus?</h3>
It is a Latin phrase that means "all other things being equal", but in economics, it means the indication of the effect one economic variable has on another provided all other variables remain the same.
Hence, the phrase means the notion that all variables except those under immediate consideration are held constant for a particular analysis.
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Answer:
a new Long income in market to get a new meal
Answer:
The maximum amount that should be paid today is $11.29
Explanation:
The constant growth model of the DDM approach can be used to calculate the price or fair value per share today based on the expected dividends that the stock will pay. As the dividends are declining n this case, the dividend growth will be negative i.e. -1.5%
The formula for the price of share today is,
P0 or V = D1 / r - g
Thus,
P0 = 1.75 / (0.14 + 0.015)
P0 = $11.29