« previous next »

Author Question: Suppose a Chinese restaurant provides free tea and fortune cookies to its customers. The restaurant ... (Read 184 times)

burchfield96

  • Hero Member
  • *****
  • Posts: 610
on: Jun 29, 2018
Suppose a Chinese restaurant provides free tea and fortune cookies to its customers. The restaurant is clearly
 
  A) generating a negative externality.
  B) generating a positive externality.
  C) selling food below cost.
  D) attempting to increase its total profit.
  E) doing none of the above.

Question 2

Differentiate between the coordination problem and the incentive problem.
 
  What will be an ideal response?


jointhecircus

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The coordination problem refers to the problem of bringing economic agents together to trade, whereas the incentive problem refers to the problem of aligning the interests of economic agents. These problems can occur in a command economy.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Field research on free-living primates allows primatologists to study patterns of behavior in the se Field research on free-living primates allows primatologists to study patterns of behavior in the se
Fortune teller classic Fortune teller classic
Plasma protein binding and drug availability: (a) The drug exists in a free state or is bound to ... Plasma protein binding and drug availability: (a) The drug exists in a free state or is bound to ...
Jostle the thigh, tossing from side to side, hand to hand. Causes loose, free movement in the hip ... Jostle the thigh, tossing from side to side, hand to hand. Causes loose, free movement in the hip ...
Structures of (a) free and (b) DNA-bound forms of BamHI, with DNA shown end-on, in orange Structures of (a) free and (b) DNA-bound forms of BamHI, with DNA shown end-on, in orange
First-order sensory neuron with free nerve endings First-order sensory neuron with free nerve endings
Video: Negative Feedback Regulation of Blood Pressure

For a complete list of videos, visit our video library