Answer:
Make them move to a different state.
Fire them.
Answer:
Correct option is (A)
Explanation:
Companies that are price setters or price makers produce unique products as they have an advantage over others. They are price makers as they enjoy monopoly in the market.
Companies producing homogeneous products cannot be price setters as there are many other companies operating in the same market so prices are set by the market forces.
Answer:
The answer is A.
Explanation:
A letter of credit is a promise given by an issuing bank at the request of its customer in which the bank promises to pay the beneficiary the states amount within a specified period of time. It has three elements – the beneficiary/seller, the buyer/applicant and the issuing bank.
While A banker's acceptance is a short term instrument given by a bank that obligates itself to make a payment at a later date. It is like a post-dated check.
Answer:
The reason why it is statisticaly misleading is because, while it is true that the average fee is $73 (the median value in statistical terms), averages are a statistical measure that is very sensitive to extreme values.
That is to say, if a value is very high, or very low, the statistical mean will be biased.
We can see this in the question. Three values are higher than the average, and relatively close: $85, $92, and $107. The third value, however, is way lower, at only $8. This extreme low value alters the median value, making it biased and misleading.
A.
If you recall, negative externalities arise when there is a divergence between marginal private cost and marginal social cost, the difference being the marginal external cost as shown from the poorly drawn diagram. If we got rid of the marginal external cost by producing less, then the externality would dissipate.
However, the question is weird as there are no options for compensation. What would rather happen is that whoever has the property rights will be compensated the size of the MEC and there would be social welfare, whereas the question only tackles removing the externality through stopping production.