Answer:
Tim imposes a Negative externality on his neighbor in the form of noise pollution.
The command-and-control policy might the landlord impose is : a) A rule that music could not be played above a certain decibel level
(True)According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
Explanation:
As given ,
Brian loves opera and hates rock 'n' roll. Tim loves playing rock 'n' roll music at high volume.
In this case, Tim imposes a Negative externality on his neighbor in the form of noise pollution.
Because Tim's rock 'n' roll music disturb Brian and it effects negatively because due to Tim's music , Brian is unable to listen opera properly
Now,
The command-and-control policy might the landlord impose is :
a) A rule that music could not be played above a certain decibel level
Now,
If the landlord lets the tenants do whatever they want.
According to the Coase theorem, Tim and Brian might not be able to reach an agreement if the transaction costs are high.
It is True
Because if transaction cost is low , then Tim can pay compensation to Brian for high volume of music . But if transaction cost is high then they can not do any negotiation.
Two way would be C personal selling. One on One.
“I assure you, brother, the sun will shine on us again.”
Economic profit refers to the profit earned by deducting the implicit cost and the explicit cost from the total revenue.
Economic Profit = Total revenue - (Explicit cost + Impllicit Cost)
where Total Revenue = $100,000
Explicit Cost = $2000 + ($25000*10%) = $4500
Implicit Cost = $70000 + $10000 = $80000
Economic Profit = $100,000 - ($4,500 + $80,000)
Economic Profit = $100,000 - $84,500
Economic Profit = $15,500
Hence, Sid's Economic Profit is equal to $15,500
Answer:
Debt does not have predefined payment terms
Explanation:
