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STALIN [3.7K]
3 years ago
12

Assume that locating a cement factory in the middle of Boston would save the producer $5 million at a public expense, in polluti

on and traffic noise, of $20 for each of 500,000 Boston residents. 1. What is the minimum amount that Boston residents would have to pay to stop the plant from being built if the owner has a legal right to build
Business
1 answer:
never [62]3 years ago
7 0

Answer:

$5 million

Explanation:

If we follow the Coase Theorem, the appropriate solution to this case should be obtained regardless of initial rights. In this case, the factory saves $5 million to the producer, but it costs $10 million to Boston residents. if Boston residents pay $5 million or more to the factory owner, then both would benefit. Boston residents will gain $10 - $5 = $5 million, as well as the factory owner.

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Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The payoff ma
ladessa [460]

Answer:

Caroline to choose right

Antonio chooses left and Caroline chooses right.

Explanation:

Interpreting the payoff matrix:

Both choose right:

Antonio receives 3, Caroline receives 7

Both choose left:

Antonio receives 4, Carolina receives 6

Caroline chooses left, Antonio chooses right:

Antonio receives 7, Caroline receives 5

Caroline chooses right, Antonio chooses left:

Antonio receives 6, Caroline receives 8

As we can see, Antonio only has a better payoff then Caroline if she chooses left and he chooses right. Therefore, the dominant strategy is for Caroline to choose right, this way she will always have the greater payoff.

If Antonio chooses right, the outcome may alter depending on the outcome, therefore it is not a Nash Equilibrium. However, if Antonio chooses left, no matter what Caroline chooses, she will have the greater payoff. At the same time, if Caroline chooses right, Antonio cannot change the outcome by changing his strategy. Therefore, the outcome reflecting the unique Nash equilibrium in this game is as follows: Antonio chooses left and Caroline chooses right.

8 0
3 years ago
U.S. appliance manufacturers find that different customs about shopping must be considered to determine product design. For inst
vovangra [49]

Answer:

Global marketing strategy

Explanation:

A global marketing strategy (GMS) is a strategy that encompasses countries from several different regions in the world and aims at coordinating a company's marketing efforts in markets in these countries. A GMS does not necessarily cover all countries but it should apply across several regions.

Competing on a global basis allows customers worldwide to be better-informed and more focused on the products and services you offer. Creating a comprehensive global marketing strategy also allows your company to adapt quickly wherever needed based on customer demands and trends in the global marketplace.

Each marketing strategy can communicate to a target market the benefits and features of a product. ..Apple, for example, has invested in creating commercials for television, billboards, and magazines that showcase their products in such a way that their customers feel an affinity towards Apple's products.

5 0
3 years ago
Read 2 more answers
On january 2, 2017, the matthews band acquires sound equipment for concert performances at a cost of $68,200. the band estimates
lesantik [10]

It estimates that after five years it can sell the equipment for $2,000. During year 2017, the band performs 55 concerts.

7 0
3 years ago
Radar Company sells bikes for $490 each. The company currently sells 4,300 bikes per year and could make as many as 4,620 bikes
Karo-lina-s [1.5K]

Answer:

Radar's additional income for accepting the order is calculated as follows:

Sales - 320 x $460 = $147,200

less Cost of Sales = 320 x $180 + $48,000 = $105,600

Additional Income = $41,600

Explanation:

The additional income of $41,600 is $147,200 - $105,600, which is the result of deducting cost of sales from Sales.

The cost of sales includes the variable cost per bike, including the incremental fixed costs ($48,000) to make this order.

To make a decision whether to accept an order or not, the company needs to consider all variable costs, including the incremental fixed costs.  The resulting additional income is what is available to offset the fixed costs.

8 0
3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

The correct answer is letter "B": 180.

Explanation:

During the first year a business operates, companies can elect to deduct up to $5,000 from their costs. If the costs are higher than $50,000, the deduction of $5,000 will be reduced by the exceeding amount. However, that exceeding amount can be amortized for up to 15 years (180 months).

8 0
3 years ago
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