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Troyanec [42]
3 years ago
5

A small neighborhood comprised of 10 homes has a problem with break-ins and find the local police to be effective. They are cons

idering hiring private security. Each household can calculate their marginal benefit of having a private security guard by the formula MB=100/(1+S) where S is the number of hours of security patrol provided per week.
If private security is a public good and the cost is $20 per hour, what is the efficient level of security? Do you expect this to be the equilibrium outcome?
Business
1 answer:
Bad White [126]3 years ago
7 0

Answer:

The efficient level of security is 4 hours of security.

The equilibrium may not be sustainable.

Explanation:

In order to calculate the efficient level of security we would Set MB=MC i.e. guard's wage for net benefit maximization.

Hence, 100/(1+S)=20

20*(1+S)=10

1+S=5

S=4

Therefore, 4 hours of security is needed . The efficient level of security is 4 hours of security.

In the followig case Security guards is public good in this case, Public good is non-excludable and non-rivalrous. People cannot be stopped from using it without paying for it. Payment for security guard is voluntary. So, equilibrium may not be sustainable.

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astra-53 [7]

Answer:

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it declares 13% stock dividend

market price at $16

since the stock dividend is considered small (less than 20%), we use the market price to record it

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Dr Retained earnings 592,800

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3 0
3 years ago
You are at a wedding and are unexpectedly asked to give a toast to the bride and groom. What would you do?
frez [133]

Answer:

I would say go for it

Explanation:

6 0
3 years ago
In the 4e framework, dell understands the importance of _______, which leads to action, the potential for a relationship, and po
zheka24 [161]
The answer to this question is: engagement
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4 0
3 years ago
Bill, age 65 has 2020 unreimbursed medical expenses totalling $20,000 and an adjusted gross income of $170,000. How much of thos
svp [43]

Answer:

$7,250

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I hope this helps!

-TheBusinessMan

7 0
3 years ago
In the money creation process, the simple money multiplier assumes that banks hold no excess reserves. What is the consequence o
Alinara [238K]

Answer:

If banks hold excess reserves, then the money multiplier will be smaller.

Explanation:

It is easier to understand using an example:

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