1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Artist 52 [7]
3 years ago
7

A few years ago, a house in Tennessee burned to the ground while firefighters, residents & politicians watched. The homeowne

r had not paid the town’s mandatory firefighting service fee, so the town fire department would not fight the fire. There was much discussion of this event in economic circles. One comment was that in a world with private rather than public fire protection, fire fighting firms would be expected to have a contract price available to use at the scene of a fire to negotiate with non-subscribers.
Consider the case of the private provision of firefighting. Assume all houses are worth V and firefighting costs F. The probability of fires pf is a decreasing function of precautions taken by homeowners S and is thus given by pf(S). Assume fires destroy houses completely unless a fire team arrives, and if a fire team arrives there is no damage. The probability of a fire truck & crew arriving to save a house is ps. Assume firefighters can’t take actions that affect their chances of getting to a fire, so the probability of arriving is fixed.
a. Write down the expression for total costs TC of protecting a house.
b. Let the price for firefighting at the scene of fire be P. Write down the expression for the homeowner’s willingness to pay at the scene.
c. What price produces the correct incentives for the homeowner to invest in precautions to avoid fires? (Hint: Equate the marginal cost of precaution and expected benefit of precaution.)
d. How would the possibility of firefighter actions impacting ps change the answer to c?
Business
1 answer:
allochka39001 [22]3 years ago
7 0
I think the answer is probably C
You might be interested in
How do working conditions and company's image motivate employees?
Reil [10]

Answer:the working conditions of the place show that it will be easier to work in and that if the company has a good image of themself then you would probably earn more money.

Explanation:

I tried the best I could.

8 0
3 years ago
A furniture company using accrual accounting purchased 20 sofas in November 2011. In December 2011, 8 of the 20 sofas were sold
kvasek [131]

Answer:

November 2011

Explanation:

Based on the information given if the company purchased 20 sofas in the month of November 2011 in which the company paid the amount of $3,000 for an advert that ran in the local newspaper in the same month of November 2011 which simply means that the month in which the advertising costs should be expensed is the month of NOVEMBER 2011 which is the month the company paid the amount of $3,000 for advertising in the local newspaper.

6 0
2 years ago
Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to atten
Damm [24]

Answer: $0

Explanation:

From the question, we are informed that Nick and Katelyn paid $1,600 and $2,100 in qualifying expenses for their two daughters, Nicole and Naomi, respectively, to attend the University of Nevada and that Nicole is a sophomore and Naomi is a freshman.

We are further told that Nick and Katelyn's AGI is $202,000. Based on the above scenario, their allowable American opportunity tax credit will be $0. This is because when AGI is more than $180,000 for such taxpayers, the credit is being phased out.

5 0
2 years ago
Makeria bought an investment for $300. Two years later she sold it for $360, what was her total ROI as a percentage?
SVEN [57.7K]

Answer:

20%

Explanation:

300÷360×100 =20%. hence 300×100=30000÷100=20%

7 0
2 years ago
The following are selected 2017 transactions of Sean Astin Corporation.
Vadim26 [7]

Answer and Explanation:

The Journal entries are shown below:-

A. a. Purchase Dr, $50,000

           To Accounts payable $50,000

(Being purchase of inventory is recorded)

b.Accounts payable Dr, $50,000

            To Notes payable $50,000

(Being issuance of notes is recorded)

c.Cash Dr, $50,000

  Discount on notes payable Dr, $4,000

             To Notes payable $54,000

(Being amount borrowed from bank and issued notes is recorded)

B. a. Interest expenses Dr, $1,000 ($50,000 × 8% × 3 ÷ 12)

            To Interest payable $1,000

(Being interest expenses is recorded)

b. Interest expenses Dr, $1,000 ($4,000 × 3 ÷ 12)

                 To Discount on notes payable $1,000

(Being interest expenses is recorded)

C. The Computation of interest-bearing note and the zero-interest-bearing note is shown below:-

Interest-bearing note = Note payable + Interest payable

= $50,000 + $1,000

= $51,000

Zero-interest-bearing note = Note payable - Discount

= $54,000 - ($4,000 - $1,000)

= $54,000 - $3,000

= $51,000

8 0
3 years ago
Other questions:
  • If the demand curve is very elastic and the supply curve is very inelastic in a market, then the sellers will bear a greater bur
    6·1 answer
  • Erin Reinhardt and her friend Carol Newman have just arrived in the country Boloni for a summer holiday. While renting a car on
    5·1 answer
  • Applying the time-period concept
    11·1 answer
  • A team that has a good plan, but is also willing to adjust their master plan and adapt when conditions call for it demonstrates
    14·2 answers
  • David Harbert recently started a business. During the first few days of operation, Mr. Harbert transferred cash from his persona
    8·1 answer
  • A study was performed to examine personal goals of children in grades 4, 5, and 6. a random sample of students was selected in v
    13·1 answer
  • Sid Glasses recently paid a dividend of $1.70 per share, is currently expected to grow at a constant rate of 5% and has a requir
    7·1 answer
  • Which type of account is typically the most liquid
    9·1 answer
  • You are looking for your first credit card. You plan to use this credit card only for emergencies and to pay the credit card bal
    5·1 answer
  • ________ is the only element in the marketing mix that produces revenue.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!