Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe and that Jenny bears a cost of $400 from the barking. Assuming Abe has the legal right to keep the dog, a possible private solution to this problem is that
a. Jenny pays Abe $150 to give the dog to his parents who live on an isolated farm.
b. Abe pays Jenny $350 for her inconvenience.
c. Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm.
d. There is no private transaction that would improve this situation.
c
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a. economic profits since they earn a return higher than the company's cost of capital b. economic profits since they earn a return lower than the company's cost of capital c. accounting profits only since they earn a return higher than the company's cost of capital d. accounting profits only since they earn a return lower than the company's cost of capital
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What will be an ideal response?
Refer to the above table. There is an excess quantity supplied of 2,000 units at a price of
A. $450. B. $500. C. $600. D. $700.
Wheat used for producing bread is
A. a durable good. B. not going to generate any employment. C. an intermediate good. D. a final good.