This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A good or service with a positive externality is one which ______. A. everyone wants to have ... (Read 44 times)

jhjkgdfhk

  • Hero Member
  • *****
  • Posts: 569
on: Jun 29, 2018
A good or service with a positive externality is one which ______.
 
  A. everyone wants to have access to
  B. is produced in the social interest
  C. the marginal social benefit exceeds the marginal private benefit
  D. the marginal external benefit exceeds the marginal private benefit

Question 2

During an economic slump such as the 2008 recession, what pricing strategies could a fast-food chain such as McDonald's use to maintain its sales? Use some of the concepts discussed in this chapter in your answer.
 
  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

wilsonbho

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jun 29, 2018
Answer to Question 1

C The definition of marginal social benefit shows that answer C is correct.

Answer to Question 2

Fast food firms usually face a relatively price elastic demand curve. The demand for fast food is also relatively income elastic as consumers tend to eat out less as their income falls. For firms that face an elastic demand curve, total revenues can be increased by reducing prices.


jhjkgdfhk

  • Member
  • Posts: 569
Reply 2 on: Jun 29, 2018
Wow, this really help

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

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.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Continuous positive airway pressure (CPAP) device. The sleeping subject is receiving the benefits of Continuous positive airway pressure (CPAP) device. The sleeping subject is receiving the benefits of
This slave burial service, painted by John Antrobus in 1860, reflects an inversion of power relation This slave burial service, painted by John Antrobus in 1860, reflects an inversion of power relation
Checking the voltage drop between the TP sensor ground and a good engine ground with the ignition ... Checking the voltage drop between the TP sensor ground and a good engine ground with the ignition ...
Skin testing. Note the spot labeled H, which is the positive histamine control, and the spot labeled ... Skin testing. Note the spot labeled H, which is the positive histamine control, and the spot labeled ...
Positive ring precipitin test. Positive ring precipitin test.
Positive and Negative Punishment Positive and Negative Punishment
Video: Deafness Culture

For a complete list of videos, visit our video library