Which of the following is an example of the free-rider problem? a. Both Zoe and Zach receive low-cost dental care at the local dental school, so neither of them pays the full cost of the care. b. Alfred receives a free lunch from the local "Meals on Wheels" program because of his low monthly income. Yet his next door neighbor, Alice, is not eligible for the free lunch. c. Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking. d. Sam purchases a burger at a fast food restaurant and gets a second burger free because the restaurant is having a buy one, get one free sale.

Answers

Answer 1

Answer:

c. Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking

Explanation:

Free rider is a form of market inefficiency that occurs when people benefit from a good or service but do not pay or underpay for the product.

Betty is receiving free protection from Bruce's dog.

I hope my answer helps you

Answer 2

Answer:

Answer:

Which of the following is an example of the free-rider problem? Option C is the most suitable answer - Bruce owns Buster, a large dog who barks whenever anyone walks near his house. Betty lives next to Bruce, and Buster's barking can be heard whenever anyone walks near her house, too. Thus, Betty receives free protection from burglars because of Buster's barking.

Explanation:

In a situation whereby one party benefits without having to pay for the transaction themselves, and rather the other party pays for it, there would be an occurrence of the free-riding problem.

In the scenario described in the question, the neighbor is receiving benefits from burglars without having to pay for the security or dog.

Therefore, option C is the most suitable answer.

Related Questions

When would a letter of comments be issued by the SEC?To request clarification of a registration statement.To convey your pertinent comments to the SEC.In response to a company's filing of Form 8-K.After receiving the company's Form 10-K.To indicate that a registration statement has been approved.A proxy statement must be filed with the SEC at least how many days before being distributed?Multiple Choicea. 30 days.b. 60 days.c. 10 days.d. 90 days.e. 7 days.
The Delta Co. owns retail stores that market home building supplies. Largo, Inc. builds single family homes in residential developments. Delta has a beta of 1.22 and Largo has a beta of 1.34. The riskminus free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their cost of equity if they decide to purchase some land and create a new residential community?
A department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 91300 units were started into production in January; and there were 20900 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?
Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported steel rods. Read the following scenario and answer the question that follows. The president of the United States argues that the United States should threaten to impose a tariff on Chinese steel rods in order to induce the Chinese to remove its tariff on American cars. Which of the following justifications is the pundit using to argue for the trade restriction on steel rods? a. National-security argument b. Infant-industry argument c. Jobs argument d. Using-protection-as-a-bargaining-chip argument e. Unfair-competition argument
Financing that individuals or institutions have provided to a corporation is: Multiple Choice always classified as a liability. classified as a liability when provided by creditors and as stockholders' equity when provided by owners. always classified as equity. classified as a stockholders' equity when provided by creditors and a liability when provided by owners.

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $60,000,and it has an estimated MV of $12,000 at the end of an estimated useful life of 14 years. Compute the depreciationamount in the thirdyear and the BV at the end of the fifth year of life by each of these methods:

Answers

Answer:

straight line depreciation:

depreciation expense per year, the same for every year = ($60,000 - $12,000) / 14 = $3,428.57

book value end of year 1 = $56,571.43

book value end of year 2 = $53,142.86

book value end of year 3 = $49,714.29

book value end of year 4 = $46,285.72

book value end of year 5 = $42,857.15

double declining balance:

deprecation expense year 1 = 2 x 1/14 x $60,000 = $8,571.43

book value end of year 1 = $51,428.57

deprecation expense year 2 = 2 x 1/14 x $51,428.57 = $7,346.94

book value end of year 2 = $44,081.63

deprecation expense year 3 = 2 x 1/14 x $44,081.63 = $6,297.38

book value end of year 3 = $37,784.25

deprecation expense year 4 = 2 x 1/14 x $37,784.25 = $5,397.75

book value end of year 4 = $32,386.50

deprecation expense year 5 = 2 x 1/14 x $32,386.50 = $4,626.64

book value end of year 5 = $27,759.86

sum of digits:

depreciable value = $60,000 - $12,000 = $48,000

total sum of digits = 120 years

deprecation expense year 1 = $48,000 x 15/120 = $6,000

book value end of year 1 = $54,000

deprecation expense year 2 = $48,000 x 14/120 = $5,600

book value end of year 2 = $48,400

deprecation expense year 3 = $48,000 x 13/120 = $5,200

book value end of year 3 = $43,200

deprecation expense year 4 = $48,000 x 12/120 = $4,800

book value end of year 4 = $38,400

deprecation expense year 5 = $48,000 x 11/120 = $4,400

book value end of year 5 = $34,000

For a present sum of $840,000, determine the annual worth (in then-current dollars) in years 1 through 6 if the market interest rate is 10% per year and the inflation rate is 3% per year. The annual worth is:________ $ .

Answers

Answer:

The annual worth is:________

$667,380

Explanation:

Present value of investment = $840,000

Number of years = 6

Market interest rate = 10%

Inflation rate = 3%

Real interest rate = 7%

PV Annuity factor = 4.767

Total FV of annuity = $840,000 * 4.767 = $4,004,280

Annual worth = $4,004,280/6 - $667,380

The annual worth of the investment of $840,000 will be $667,380 based on the market-adjusted interest rate of 7% (10 - 3).

A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and $20,000, respectively. If the price elasticity of demand for good X is -4.0 and the cross-price elasticity of demand between Y and X is 2.0, then a 2 percent decrease in the price of X will _______.

Answers

Answer:

X demand would rise by 8% ; Y demand would fall by 4%

Explanation:

Price Elasticity of Demand is the responsiveness in demand quantity, due to change in good's price

P.Ed = % change in demand / % change in own price

Cross Price Elasticity is the responsiveness in a good's demand quantity, due to change in other good's price

C.Ed = % change in demand (Y) / % change in other good's price (X)

Given {Good X Elasticities} : P.Ed = (-) 4 ; C.Ed = 2

Price of X decrease = 2%

P.Ed = 4 = % change in demand / 2

% change in demand of X = 2 x 4 = 8%

P.Ed absolute value ignoring negative has been taken due to law of demand price - demand inverse relationship already depicting it. So, 2% fall in price of X increases it's quantity demanded by 8%

C.Ed = 2 = % change in Y demand / 2

% change in Y demand = 2 x 2 = 4%

Cross Price Elasticity of demand is positive in case of substitute goods. These goods can be interchange-ably used to satisfy a particular want. Substitutes price & demand are directly related;- as price fall of a good makes it relatively cheap, increases its demand, decreases other good's demand. So, 2% decrease in good X price decreases good Y demand by 4%

Can someone plz help me really quick? I’m struggling. I can give brainliest points.

Answers

Pretty sure its the third one

Chris Taylor: Attempt 1Question 1 (2 points)
Saved
Which of the following is one of four steps you might use to improve your thinking?
a) Be reasonable.
b) Stick to your biases.
c) Be considerate and caring.
d) Avoid logic and reason.

Answers

Be reasonable

Explanation:

Be reasonable where u use logic and strong motives which consequently improves your way of thinking

I hope that I answered u

The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $457 and that would increase the direct materials cost per bracelet by $7. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.