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Mashutka [201]
3 years ago
14

In which of the following cases is the Coase theorem most likely to solve the externality?

Business
1 answer:
inessss [21]3 years ago
4 0

Answer:

a. Ed is allergic to his roommate's cat.

Explanation:

In the case of coase theorem the economic conditions in which there is a conflict of proerty rights and the parties that are involved could bargain or negotiate the terms so this will correctly to be shown the complete cost also the values related to the property rights at issue that could result in the effecient outcome or result

So as per the given situation, the option a is correct

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Mary O. Andrettey wants to purchase an expensive sports car. She needs to borrow money to purchase the car, and has loan proposa
irina [24]

Answer: Proposal C

Explanation:

The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.

Proposal A.

Periodic payment of $2,000 makes this an annuity.

Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r

= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%

= $103,451.12

Proposal B

Present value = Down payment + present value of annuity

= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]

= 10,000 + 93,676.70

= $103,676.70

Proposal C

Present value = Present value of annuity + Present value of future payment

= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]

= 16,435.51 + 85,999.17

= $‭102,434.68‬

<em>Proposal C has the lowest present value and so is best. </em>

6 0
3 years ago
What are the primary functions of a central bank?
Vesnalui [34]

Answer:

The correct answer is:

  • Conduct monetary policy;
  • Ensure that the financial system is stable;
  • Provide banking services to commercial banks, depository institutions, and the federal government.

Explanation:

A central bank is the apex monetary authority in a country. It plays several crucial roles in the smooth working of the economy.

  1. A central bank issues currency on behalf of the government.
  2. It formulates monetary policy on behalf of the government.
  3. It acts as a banker for the government.
  4. It acts as a banker for commercial banks.
  5. It supervises all financial institutions.

The role of providing services to businesses and consumers is played by commercial banks. Fiscal policy is formulated by the government. The responsibility of ensuring the growth of the economy also falls with the government.

4 0
3 years ago
Find the area of a rectangle with the length measuring 8 km and the width measuring 5 km.
Gnoma [55]

Answer:

The answer is <em><u>C. 40 km^2</u></em>

<em><u>8km*5km = 40</u></em>

A = L*W

L = 8 km

W = 5 km

7 0
3 years ago
By the end of jane eyre, to what extent is jane now equal with rochester? what changes in each of their conditions account for t
Ostrovityanka [42]
It is possible to question Jane Eyre’s proto-feminism on the grounds that Jane only becomes Rochester’s full equal (as she claims to be in the novel’s epilogue-like last chapter) when he is physically infirm and dependent on her to guide him and read to him—in other words, when he is physically incapable of mastering her. However, it is also possible that Jane now finds herself Rochester’s equal not because of the decline Rochester has suffered but because of the autonomy that she has achieved by coming to know herself more fully.<span />
7 0
3 years ago
Companies using target costing ________. start with an ideal selling price and then target costs that will ensure that the price
Anika [276]
<span>Companies using target costing start with an ideal selling price and then target costs that will ensure that the price is met.

Companies use this approach to make sure they are setting a projects price point at appropriately. They want to make sure it meets the standards the price point is set at by quality and functionality of the product being worth the money a customer will spend for it. They are able to design their profit margin and build the target costs and revenue around that.  </span>
8 0
3 years ago
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