One
kind of market failure arises because there are situations when it is
impossible to charge the customer for the service, for example if someone
arranges an air show or fireworks, this can be seen from a far place as well as
seen by paying for the event making it impossible to limit this for only those
who pay for that. This is one kind of failure which is non-excludable (You cannot
exclude those watching from far) and non-rival (One person’s watching does not
limit other one’s sight).
Second
kind is the presence of externality. It arises when the cost or benefits accrue
to someone other than the buyer and seller. For example cigarette is affecting
the third party by making the environment pollute.
Both
can happen simultaneously. For example a firework show keeps both attributes of
first kind and the second kind as well.
Answer:
The minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying the annual membership dues is 23 years.
Explanation:
The question is incomplete.
<em>Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $600 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $6,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it's a great deal. Suppose that the appropriate annual interest rate is 7.4%. What is the minimum number of years that Lloyd must remain a member of the ADLA so that the lifetime membership is cheaper (on a present value basis) than paying $600 in annual membership dues?</em>
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We have to equal the price of the lifetime membership with the present value of the annual membership. The anual membership present value is equal to a annuityof n years.
I guess the best option is perceived risk.
When Kia Motors offers a 10-year, 100,000 mile warranty for the Kia Soul automobile, its strategy is to reduce consumers' perceived risk and encourage purchases.
M1 decreases and M2 doesn't change if Ms. Anniston moves $1,000 from her checking account to her money market account.
<h3>What are M1 and M2?</h3>
Money supply in M1 and M2. Money that is very liquid, such as cash, checkable (demand) deposits, and traveler’s checks, is included in the M1 money supply.
The M2 money supply, which consists of the M1 money supply plus savings and time deposits, certificates of deposits, and money market funds, is less liquid in nature. M2 is a larger definition of money that adds more deposit kinds along with everything in M1.
For more information about M1 and M2 refer to the link:
brainly.com/question/4221657
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