« previous next »

Author Question: Suppose a Chinese restaurant provides free tea and fortune cookies to its customers. The restaurant ... (Read 160 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?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Detail of the Chinese-style gate of Nishi Hongan-ji in Kyoto; Momoyama period; National Treasure Detail of the Chinese-style gate of Nishi Hongan-ji in Kyoto; Momoyama period; National Treasure
Constance King and Mae Chinn hang an NRA poster—including a Chinese translation—encouraging ... Constance King and Mae Chinn hang an NRA poster—including a Chinese translation—encouraging ...
Free Energy Rules: The Second Law in Open Systems Free Energy Rules: The Second Law in Open Systems
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Chinese Dragon new year 2024 Chinese Dragon new year 2024
Video: Rena arc construction

For a complete list of videos, visit our video library