« previous next »

Author Question: Suppose a Chinese restaurant provides free tea and fortune cookies to its customers. The restaurant ... (Read 178 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?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Free Energy Enzymes Free Energy Enzymes
The Chinese counteroffensive of November 1950 caught the Americans by surprise and cut off many ... The Chinese counteroffensive of November 1950 caught the Americans by surprise and cut off many ...
Glycerolipid/free fatty acid cycle and glyceroneogenesis Glycerolipid/free fatty acid cycle and glyceroneogenesis
Chinese samosa with hot sauce Chinese samosa with hot sauce
MAAMOUL COOKIES المعمول السوري بالجوز والفستق الحلبي MAAMOUL COOKIES المعمول السوري بالجوز والفستق الحلبي
Chinese Dragon new year 2024 Chinese Dragon new year 2024
Video: Mechanisms of capillary exchange

For a complete list of videos, visit our video library