This topic contains a solution. Click here to go to the answer

Author Question: Since collective consumption goods have a marginal cost of zero, the efficient price is equal to ... (Read 71 times)

waynest

  • Hero Member
  • *****
  • Posts: 553
Since collective consumption goods have a marginal cost of zero, the efficient price is equal to _____.
 
  a. average fixed cost
  b. average variable cost
  c. marginal cost
   d. the market price

Question 2

Discuss why saving and investing entails risk. What is the reward for bearing risk? Explain how income taxes affect the returns to risk bearing and its impact on overall risk taking and innovation.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ntsoane kedibone

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

c

Answer to Question 2

Saving and investing entails risk because individuals are bearing the burden of the possibility that investments might not pay out or that inflation might erode the value of savings. The reward for bearing risk is above-normal profits. The higher the risk, the higher the potential for above-normal profits. Income taxes reduce the return on bearing risk. On the other side, however, government does not subsidize losses from risk taking. Thus, income taxes create a bias against risk taking and innovation.




waynest

  • Member
  • Posts: 553
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)


jackie

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Though the United States has largely rejected the metric system, it is used for currency, as in 100 pennies = 1 dollar. Previously, the British currency system was used, with measurements such as 12 pence to the shilling, and 20 shillings to the pound.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

For a complete list of videos, visit our video library