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polet [3.4K]
3 years ago
10

One way to avoid the free rider problem is A. through mandates. B. for the government to provide the good or service. C. to use

social pressure. D. All of the above.
Business
1 answer:
fgiga [73]3 years ago
7 0

Answer: Option (D) is correct.

Explanation:

Free rider problem is the problem in which some individuals get benefits from the good and services that are owned by someone else but those individuals who are enjoying, doesn't pay anything for the benefit that they received from the goods and services.

Public goods are generally considered as a non-rival and non-excludable. There are some free rider problem arises in the provision of public goods, if the goods are distributed by a group.

If goods are distributed by the government then this problem of free rider could be resolved because government distributed goods at a large scale, so government can charge a price in terms of direct and indirect taxes for the provision of public goods.

Mandate also resolved the problem of free rider because through mandate every person need to pay for using the public good.

Social pressure also resolved the problem of free rider. If there are social pressure that people won't be able to use the provided goods and services until they pay the minimum amount for that good.

Therefore, option (D) is correct.

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For each of the following shifts(A,B,C,&D) in the demand curve and associated price change of a complement or substitute ite
muminat

Answer:

A. Decrease in price of complements

B. Increase in price of complements

C. Increase in price of substitute

D. Decrease in price of substitute

Explanation:

A. A decrease in the price of a good would increase its demand. This will cause the demand for its complements to increase as well, this is because the complements are consumed together.

B. Similarly, the increase in the price of a good would decrease in its demand. Along with it, the demand for its complement will decrease as well because the complements will be consumed together.

C. When the price of a good increases, its demand will decrease. The demand for its substitutes will increase because the consumers will prefer the cheaper substitute.

D. Similarly, the decline in the price of a good will make it cheaper, so its demand will increase. The demand for its substitute will decrease because the consumers will prefer the good that is cheaper.

4 0
3 years ago
Madrid Company has provided the following data (ignore income taxes): 2018 revenues were $77,500. 2018 net income was $33,900. D
Gennadij [26K]

Answer:

C. Retained earnings increased $28,200 during 2018.

Explanation:

Total liabilities = Total assets - Total equities

= $217,000 - $123,000

= $94,000

Common stock as at December 31, 2018 = Total equity - Total retained earnings

= $123,000 - $83,000

= $40,000

Retained earnings at year end =

Opening retained earnings + net income - dividend paid

$83,000 = Opening retained earnings + $33,900 - $5,700

$83,000 = Opening retained earnings + $28,200

Opening retained earnings = $54,800

Change in retained earnings = Closing retained earnings - Opening retainer earnings

= $83,000 - $54,800

= $28,200

Therefore, Option 'C' is the correct option.

8 0
3 years ago
The payment made each period on an amortized loan is constant, and it consists of some interest and some principal. At the begin
shepuryov [24]

Answer: False

Explanation:

The process of Amortization spreads out a loan into a series of fixed payments over time.

The borrower essentially pays the both the loan's interest and it's principal in varying amounts per month but the total payment is the same.

During the beginning of the loan repayment schedule, interest costs are known to be highest and only a small portion of the balance/principal is paid.

The statement is therefore FALSE.

If you need any clarification or have any questions please feel free to comment or react. Thank you.

7 0
3 years ago
Read 2 more answers
Jackson Tires reported net sales of $80 million and total operating costs (including depreciation) of $52 million. Jackson Tires
Roman55 [17]

Answer:

d. 8.18 million

MVA is $380 million

Explanation:

Net residual Income is the value of the firm. All the preferred and required / agreed return on any the funding availed is deducted from the net earning after profit to make the value for the firm. The income purely associated to the firm is considered as the value of the firm.

Earning Before Interest and tax = Net Sales - Operating costs = $80 million - $52 million = $28 million

Net Operating profit after tax = $28 x ( 1 - 40% ) = $16.8 million

Return on investor-supplied capital = $115 million x 7.5% = $8.625 million

Value created for the firm = Net operating profit after tax - Return on investor-supplied capital = $16.8 - $8.625 = $8.175 million = $8.18 million

MVA is the net of market capitalization and stockholders equity of the firm. It is the difference of market value and book value of equity of a firm.

MVA = ( Outstanding shares x Market value of shares ) - Book value od the equity = ( 20 million shares x $25 per share ) - $120 million = $500 million - $120 million = $380 million

6 0
3 years ago
Explain the use of NBT​
Natalija [7]
The National Benchmark Tests (NBTs) are assessments for first-year applicants into higher education institutions. The NBTs were designed to measure a writer's ability to transfer understanding of Academic Literacy, Quantitative Literacy and Mathematics to the demands of tertiary coursework
3 0
2 years ago
Read 2 more answers
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