When analyzing large public goods problems, you compute an "efficiency ratio" by dividing the probability of providing the public good by the probability that it is efficient to provide the good. This question asks you to repeat that analysis, but assuming that the cost of providing the public good is always 1 (not 1 per person, but 1 total).
(a) What is the efficiency ratio for n = 2?
(b) What does the efficiency ratio tend to as n gets very large? (Hint1: you may use the following fact. The probability that the sum of all
n valuations is less than 1 is 1/n!. Hint2: you may need to look up the limit of (1 −1/n)n)
(c) Is the case of n = 2 better or worse than the case of very large n? What is your intuition for why this is the case?
Answers
The efficiency ratio tends to 1.(c) the case of n = 2 is worse than the case of very large n in terms of efficiency.
(a) to compute the efficiency ratio for n = 2, we need to determine the probability of providing the public good and the probability that it is efficient to provide the good.
in this case, since the cost of providing the public good is always 1, there are two possible outcomes:1) if both individuals value the public good at 1 or more, it is efficient to provide the good.
2) if at least one individual values the public good at less than 1, it is not efficient to provide the good.
to calculate the efficiency ratio, we need to find the probability of providing the public good (both individuals valuing it at 1 or more) and the probability that it is efficient to provide the good (both individuals valuing it at less than 1).
the probability of providing the public good is determined by the valuation distribution. since we don't have information about the specific distribution, we cannot calculate the exact probability for n = 2.
(b) as n gets very large, the efficiency ratio tends to 1. this can be seen by considering the limit of the expression (1 - 1/n)ⁿ as n approaches infinity. the limit of (1 - 1/n)ⁿ is equal to 1/e, where e is euler's number, approximately 2.71828. this means that as n gets larger, the probability of providing the public good approaches 1, and the probability that it is efficient to provide the good also approaches 1. when n = 2, there are only two individuals, and their valuations determine whether it is efficient to provide the public good. if either individual values the public good at less than 1, it is not efficient to provide it. this makes it more likely that the public good will not be provided, resulting in a lower efficiency ratio.
on the other hand, as n gets very large, the probability that all individuals value the public good at 1 or more increases, making it more likely that the public good will be provided and efficient. with a larger number of individuals, there is a greater chance of finding a collective valuation that supports the provision of the public good, leading to a higher efficiency ratio.
the intuition behind this difference is that as the number of individuals increases, there is a greater diversity of valuations, making it more likely that some individuals will value the public good highly enough to make it efficient to provide. with only two individuals, there is less room for variation in valuations, increasing the likelihood of inefficiency.
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Related Questions
the first step in designing a computerized accounting system is the creation of the
Answers
The first step in designing a computerized accounting system is the creation of the chart of accounts.
A chart of accounts is a categorized list of all the accounts that are used to record financial transactions in an organization. It serves as the foundation of the accounting system and provides a structure for organizing and classifying different types of financial transactions.
The chart of accounts typically includes various categories such as assets, liabilities, equity, revenue, and expenses. Each account is assigned a unique account number and name, allowing transactions to be properly recorded and summarized.
By creating a well-designed chart of accounts, businesses can ensure that their financial data is organized, accurate, and easily accessible for reporting and analysis purposes.
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Which type of business organisation is the most suitable for a large electronics
manufacturer?
A. partnership
B. private limited company
C. public limited company
D. sole trader
Answers
Answer:
C. public limited company
Explanation:
A public limited company is a business ownership structure that provides a legal distinction between the business and its owners. The company is a legal person with the right to do business, acquire assets or incur liabilities. Unlike a private limited company, public limited company shares trade with ease at the stock exchange.
Due to their listing in the stock exchange, public limited companies can raise capital with much ease. The corporation only needs to comply with the regulation of the stock market to raise more finances. Public limited compies are suited for large organizations that require huge capital to finance their operations and expansions.
Javier and Anita Sanchez purchased a home on January 1, 2019, for $600,000 by paying $200,000 down and borrowing the remaining $400,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes' marginal tax rate is 32 percent. a. What is the after-tax cost of the interest expense to the Sanchezes in 2019?
After-tax cost of the interest expense Javier and Anita Sanchez purchased a home on January 1, 2019, for $600,000 by paying $200,000 down and borrowing the remaining $400,000 with a 7 percent loan secured by the home. The loan requires interest-only payments for the first five years. The Sanchezes would itemize deductions even if they did not have any deductible interest. The Sanchezes' marginal tax rate is 32 percent. c. Assuming the interest expense is their only itemized deduction for the year and that Javier and Anita file a joint return, have great eyesight, and are under 60 years of age, what is the after-tax cost of their 2019 interest expense?
After-tax cost of the interest expense
Answers
The interest expense for the year is calculated by multiplying the loan amount by the interest rate: $400,000 x 7% = $28,000.
To determine the after-tax cost of the interest expense, we need to take into account the Sanchezes' marginal tax rate of 32%. This means they will receive a tax deduction for the interest expense of $28,000 x 32% = $8,960.
The after-tax cost of the interest expense is the total interest expense minus the tax savings: $28,000 - $8,960 = $19,040. Therefore, the after-tax cost of the interest expense to the Sanchezes in 2019 is $19,040.
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if a lender refuses to make harry a 30-year mortgage just because harry is 85 years old, they will have violated:
Answers
Licensees should take care to display residences only on the basis of clients' expressed housing preferences and without imparting statistics about neighborhood demographics that may bring a cost of steering.
Which of these conditions represents the unlawful exercise of redlining?Hunter, a loan broker, refuses to underwrite mortgage applications from applicants who are shopping for in particular neighborhoods.
What is steerage truthful lending examples?Steering a borrower to a loan with much less favorable phrases due to the fact of his or her race, color, religion, sex (including gender, gender identity, sexual orientation, and sexual harassment), familial status, national origin or disability.
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How is a credit union different from a bank?
O Acredit union offers services to companies instead of individuals.
A credit union only offers credit, it does not store money.
Acredit union is usually larger than a bank.
O A credit union is owned by its customers.
Answers
Answer:
a credit union is owned by its costumers (D)
Explanation:
i took the assignment!!
One disadvantage of advertising is that it Question 19 options: A) provides entertainment. B) encourages impulse buying. C) stimulates competition. D) saves time.
Answers
Answer:
encourages impulse buying
Answer:
b Encourages impulse buying
Explanation:
advertisements are to catch the peoples eyes and make the consumer think they really need that item
in the context of abraham maslow's hierarchy of needs, who among the following individuals exhibits security needs? a. tara, who expects her organization to provide her with basic amenities such as potable drinking water b. samantha, who wants to maintain a positive view of herself by improving her performance c. ali, who expects his organization to provide him a pension plan to help him after his retirement d. denver, who cherishes having meaningful interactions and healthy relationships with his co-work
Answers
In the context of Abraham Maslow's hierarchy of needs, Ali exhibits security needs. Option C is the correct answer.
Maslow's hierarchy of needs suggests that individuals have different levels of needs that must be met in a hierarchical order. The security needs, also known as safety needs, are the second level in the hierarchy and involve the need for stability, protection, and a sense of security. This includes physical safety, financial security, job security, and access to resources that ensure a stable and predictable environment.
Ali's expectation of his organization providing him with a pension plan to support him after retirement aligns with the security needs. This reflects his desire for financial security and the assurance that he will have a stable future beyond his working years.
Tara's expectation of basic amenities, Samantha's focus on self-improvement, and Denver's emphasis on meaningful relationships are related to different levels of needs within Maslow's hierarchy, but they do not specifically align with security needs.
Option C is the correct answer.
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The volume of a pyramid that fits exactly inside a cube is 10 cubic feet. What is the volume of the cube?
Answers
The volume of the cube is approximately (∛30)^3 cubic units.
To find the volume of the cube, we need to determine the length of one side since all sides of a cube are equal.
Let's assume that the length of one side of the cube is represented by "s".
Since a pyramid that fits exactly inside the cube has a volume of 10 cubic feet, we can set up the equation:
(1/3) * base area * height = 10
The base area of the pyramid is equal to the area of one face of the cube, which is s^2. The height of the pyramid is also equal to the side length of the cube, which is s.
Substituting these values into the equation, we get:
(1/3) * s^2 * s = 10
Simplifying further:
s^3/3 = 10
Multiplying both sides by 3:
s^3 = 30
Taking the cube root of both sides:
s = ∛30
Therefore, the length of one side of the cube is approximately ∛30.
To find the volume of the cube, we cube the length of one side:
Volume = (s)^3 = (∛30)^3
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After many months in business, Horatio decides that there are some negative aspects of having a sole proprietorship. All of the followin
are negatives except.
Answers
As Horatio decides that there are some negative aspects of having a sole proprietorship, the exception to the negative was "Pride of ownership".
What is a sole proprietorship?It refers to a one-man business organisation. It involve a natural person (not a legal person/entity) who fully owns and manages this type of entity. In addition, the sole proprietorship usually does not have to be incorporated or registered.
Because of these fact, the sole proprietorship is the simplest form of business structure and the ideal choice to run a small business or medium scale business.
Missing options "a)lack of money b)lack of continuity c)pride of ownership d)unlimited liability
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Several theories try to account for the existence of the informal sector: a legalistic/libertarian approach, a structuralist approach, and a survivalist approach. Give a one-sentence overview of each. Why does understanding each theory matter?
Answers
By considering the legalistic/libertarian, structuralist, and survivalist perspectives, a more comprehensive understanding of the informal sector can be developed.
The legalistic/libertarian approach posits that the informal sector exists due to excessive government regulation and intervention, which drives individuals and businesses to operate informally to avoid bureaucratic constraints.
The structuralist approach asserts that the informal sector is a result of structural issues within the economy, such as income inequality, underemployment, and limited opportunities for formal employment.
Lastly, the survivalist approach suggests that the informal sector exists as a means for individuals to make a living and meet their basic needs when formal employment opportunities are scarce or unavailable.
Understanding each theory matters because it enables policymakers and stakeholders to address the root causes of the informal sector's existence and develop appropriate strategies to reduce its negative effects, such as tax evasion and labor exploitation, while fostering the positive aspects, like entrepreneurship and self-reliance.
By considering the legalistic/libertarian, structuralist, and survivalist perspectives, a more comprehensive understanding of the informal sector can be developed, ultimately leading to better-informed policy decisions and interventions.
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Does calcculation of financial need in college take into consideration other siblings in college at the same time
Answers
Depending on how many siblings are enrolled in college at the same time, the Expected Family Contribution (EFC), which is determined when a family applies for financial assistance, might vary from year to year. Families with several children enrolled in college at the same time may be more eligible for financial aid.
Why does my EFC differ from that of my siblings?
The EFC for the eldest sibling is roughly lowered in half when a younger sibling enrols in college to reflect the increased family expenses incurred. Since they both utilise their parents' tax information, both siblings will have roughly the same EFC, despite having slightly different individual earnings and savings.
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Assessment
71
Companies already on the stock market get to choose the price of their stocks.
True
False
Answers
Answer:
false cause people they alr on the stock market
Identify whether the expense below would be considered a want, a need, or savings.
Concert tickets
Savings
Want
Need
Answers
what is the formula for computing a firm's sustainable growth rate?
Answers
The formula for computing a firm's sustainable growth rate is:
Sustainable Growth Rate = (Net Income / Total Assets) x (1 - Dividend Payout Ratio)
This formula takes into account the company's profitability (measured by net income) and its ability to generate growth without having to rely on external financing. The total assets represent the amount of resources that the company has at its disposal to generate growth. The dividend payout ratio measures the amount of profits that the company pays out to its shareholders as dividends. By subtracting this amount from 1, we get the portion of profits that the company retains for reinvestment. The resulting sustainable growth rate represents the rate at which the company can grow over the long term while maintaining a stable financial structure. It's important to note that this formula assumes that the company is able to maintain its current level of profitability and asset utilization over time, and that external financing is not required.
Hello! The formula for computing a firm's sustainable growth rate (SGR) is as follows:
SGR = ROE x Retention Ratio
Where:
- ROE (Return on Equity) = Net Income / Shareholder's Equity
- Retention Ratio = 1 - Dividend Payout Ratio
- Dividend Payout Ratio = Dividends / Net Income
Step-by-step explanation:
1. Calculate the Return on Equity (ROE) by dividing Net Income by Shareholder's Equity.
2. Calculate the Dividend Payout Ratio by dividing Dividends by Net Income.
3. Calculate the Retention Ratio by subtracting the Dividend Payout Ratio from 1 (1 - Dividend Payout Ratio).
4. Multiply ROE by the Retention Ratio to find the Sustainable Growth Rate (SGR).
This formula helps determine the maximum rate at which a firm can grow without needing to obtain external financing.
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John has just paid off the full balance of his credit card. What happens to the
debt?
a. John will be paid an interest
b. It is added back to his credit limit to be used again
c. His credit limit will be increased
d. It remains a debt
Answers
Answer:
I think the answer is B. If It's correct please give the brainliest award.
John has just paid off the full balance of his credit card. It is added back to his credit limit to be used again. Thus the correct option is B.
What is a credit card?A credit card is referred to as plastic money that allows an individual to do shopping or buy products above the limit of credit cards by borrowing from the bank.
When an individual paid off the full balance of his credit card. It gives a good impression on the lender and helps in improving the credit rating of an individual and can allow for ease in accessing loans.
When an individual pays off the full balance that amount is added to the account and the credit limit can be used again. when the payment is not made timely the interest will be charged at a particular rate.
Therefore, option B is appropriate.
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what are the five advantages of brainstorming
Answers
Answer:
Explanation:
Brainstorming is simply a creativity technique that is used when people come together and give their ideas and opinions on certain issues or topics and the ideas gotten are then used to derive a conclusion. The advantages of brainstorming include:
1. It improves teamwork.
2. It enhances idea building and creativity.
3. It encourages open and ongoing collaboration which is vital in tackling an issue.
4. It increases harmony.
5. It allows for breaking routine as individuals can get out of their normal routine.
carl’s house payment is $1,050 per month and his car payment is $385 per month. if carl’s take-home pay is $2,800 per month, what percentage does carl spend on his home and car?
Answers
Carl spends 51.25 percentage points of his take-home pay on his home and car payments.
Carl spends a total of $1,050 + $385 = $1435 on his home and car each month. To find the percentage of his take-home pay that he spends on these expenses, we can use the following formula:
Percentage = (Total expenses / Take-home pay) × 100
Plugging in the given values, we get:
Percentage = ($1435 / $2800) × 100
Simplifying, we get:
Percentage = 0.5125 × 100
Percentage = 51.25%
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Subtract ( p-q)-(p+q)
Answers
Answer:
Explanation:8s9s88s
when a contract is created based strictly on the words or actions of the parties involved, it would be considered to be which type of contract?
Answers
When a contract is created based strictly on the words or actions of the parties involved, it is considered an "express contract." This type of contract is formed when the terms and conditions are explicitly stated by the parties, either verbally or in writing.
A formal agreement between two or more parties that legally binds them is referred to as a "contract." A verbal agreement between parties still counts as a "contract" in this sense.
Multiple parties can readily connect with one another and cooperate to carry out a business plan thanks to contracts. Companies can establish and manage business alliances by using a contract that specifies the duties and obligations of each party.
Every corporation, as well as individual connections and societal coherence, is built on contracts. Contracts are agreements that enable people, groups, and society to cooperate and pursue their particular aims and purposes. They are legal agreements that we must abide by or the law will hold us responsible.
When a contract is created based strictly on the words or actions of the parties involved, it would be considered to be an express contract.
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A person has income $1000 for goods F and S. The price of F is $4, and the price of S is $200. Which of the following bundles is in the opportunity/budget set (i.e., attainable)?
Select one:
a.
150 units of food, 3 units of shelter
b.
100 units of food, 10 units of shelter
c.
200 units of food, 2 units of shelter
d.
200 units of food, 1 unit of shelter
e.
250 units of F and 1 unit of shelter
Answers
The bundle that is attainable is option e. 250 units of F and 1 unit of shelter.
Option e is the only bundle that falls within the person's budget constraint. The person has an income of $1000, and the price of F is $4. Therefore, the person can afford a maximum of $1000/$4 = 250 units of F. Additionally, the person can afford 1 unit of shelter since its price is $200, which is within their budget.
Option a is not attainable because the person cannot afford 150 units of food and 3 units of shelter within their budget. Option b is also not attainable because the person cannot afford 100 units of food and 10 units of shelter. Option c exceeds the person's budget since they cannot afford 200 units of food and 2 units of shelter. Option d also exceeds the budget as the person cannot afford 200 units of food and 1 unit of shelter.
Therefore, the only option that falls within the person's budget constraint and is attainable is e. They can purchase 250 units of F and 1 unit of shelter.
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What determining factor do buyers use to
select products in a pure competition
market?
A. Quality
C. Profit
B. Brand
D. Price
Answers
Answer: D
Explanation:
Answer: In a pure competition market, the determining factor that buyers use to select products is price. Therefore, the correct answer is option D: price.
Explanation: In a pure competition market, the determining factor that buyers use to select products is price. In a pure competition market, there are many buyers and sellers, and the products offered by the sellers are largely the same. In this type of market, buyers will typically choose the product with the lowest price, as there is little difference between the products offered by the different sellers. Other factors, such as quality, brand, and profit, may also play a role in a buyer's decision, but in a pure competition market, price is typically the most important factor.
what is stock exchange?
Answers
1. Job that helps you earn money to pay for college
Answers
Answer:
work - study
Explanation:
Answer:
work ..... study
Explanation:
If employees believe that salary decisions are fair and consistent for all job categories, what type of justice exists?evaluating whetherintentprocedural
Answers
If employees believe that salary decisions are fair and consistent for all job categories, it suggests the presence of procedural justice.
Procedural justice refers to the fairness of the processes and procedures used to make decisions. In this case, if employees perceive that salary decisions are made using consistent and transparent procedures that are applied equally to all job categories, it enhances their perception of procedural justice. This means that the decision-making process itself is fair, regardless of the outcome or intent behind the decisions.
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Full Question: If employees believe that salary decisions are fair and consistent for all job categories, what type of justice exists?
You open a new bank account at Eastside Savings. You see FDIC stickers around the bank, and the teller specifically mentions that Eastside
Savings is "FDIC Insured". A few months later, you hear on the radio that Eastside Savings is struggling to stay in business. Your savings balance
Is $500. What would happen to that money if Eastside Savings failed?
A.You could lose $250 since FDIC Insurance only covers 50% of the money you have deposited.
B.You would lose all of your money.
C.You would receive $250,000 since FDIC Insurance provides each account at the bank with $250,000 regardless of how much they
have deposited
D.You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
Answers
Answer:
The correct option is D. You would receive all the money you have deposited at Eastside Savings since FDIC insurance covers accounts up to $250,000.
Explanation:
Based on the information given what would happen to that money in a situation where Eastside Savings failed is that such individual would receive all the money he/she have deposited at Eastside Savings reason been that FDIC which is fully known as FEDERAL DEPOSIT INSURANCE CORPORATE insurance covers accounts up to the amount of $250,000 and Secondly Eastside Savings is "FDIC Insured".
What is product positioning?
Answers
Answer:
Product positioning is the process of thinking and communicating about how you want your market to think and feel about your product. Successful product positioning requires your team to articulate.
Explanation:
Identify two acts that Tumi Manufacturers complies with. Motivate your answer by quoting from the case study above
Answers
Two acts that the TUMI manufacturers comply with are:
Environmental regulationslabor and employment actThe corporate responsibility of this organizationAs a result of the corporate responsibility of this business group, they are known to respect environmental laws.
This law requires them to avoid the use of chemicals and substances that are harmful to the environment.
Also the business has to comply with laws that concerns labor and employment.
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Question 1 - An electric switch manufacturing company has to choose one of three different assembly methods. Method A will have a first cost of $40,000, an annual operating cost of $9000, and a service life of 2 years. Method B will cost $80,000 to buy and will have an annual operating cost of $6000 over its 4-year service life. Method C will cost $130,000 initially with an annual operating cost of $4000 over its 8-year life. Methods A and B will have no salvage value, but method C will have some equipment worth an estimated $12,000. Which method should be selected? Use present worth analysis at an interest rate of 10% per year. Question 2 - Two processes can be used for producing a polymer that reduces friction loss in engines. Process T will have a first cost of $750,000, an operating cost of $60,000 per year, and a salvage value of $80,000 after its 2-year life. Process W will have a first cost of $1,350,000, an operating cost of $25,000 per year, and a $120,000 salvage value after its 4-year life. Process W will also require updating at the end of year 2 at a cost of $90,000. Which process should be selected on the basis of a future worth analysis at an interest rate of 12% per year?
Answers
Question 1: Based on present worth analysis at an interest rate of 10% per year, Method A should be selected.
Question 2: Based on future worth analysis at an interest rate of 12% per year, Process T should be selected.
here some more information:
Question 1 : To determine the best method, we calculate the present worth (PW) of each option. Method A has a first cost of $40,000 and an annual operating cost of $9,000 over 2 years. Method B has a first cost of $80,000, an annual operating cost of $6,000 over 4 years, and no salvage value. Method C has a first cost of $130,000, an annual operating cost of $4,000 over 8 years, and a salvage value of $12,000.
Calculating the present worth of each method:
PW(A) = -$40,000 - ($9,000 / (1 + 0.10)) - ($9,000 / (1 + 0.10)^2) = -$51,736.36
PW(B) = -$80,000 - ($6,000 / (1 + 0.10)) - ($6,000 / (1 + 0.10)^2) - ($6,000 / (1 + 0.10)^3) - ($6,000 / (1 + 0.10)^4) = -$97,826.45
PW(C) = -$130,000 - ($4,000 / (1 + 0.10)) - ($4,000 / (1 + 0.10)^2) - ... - ($4,000 / (1 + 0.10)^8) + ($12,000 / (1 + 0.10)^8) = -$122,281.63
Method A has the highest present worth (-$51,736.36), indicating the lowest overall cost compared to Methods B and C. Therefore, Method A should be selected.
Question 2: To determine the best process, we calculate the future worth (FW) of each option. Process T has a first cost of $750,000, an operating cost of $60,000 per year over 2 years, and a salvage value of $80,000. Process W has a first cost of $1,350,000, an operating cost of $25,000 per year over 4 years, and a salvage value of $120,000. Process W also requires an update cost of $90,000 at the end of year 2.
Calculating the future worth of each process:
FW(T) = -$750,000 - ($60,000 / (1 + 0.12)) - ($60,000 / (1 + 0.12)^2) + ($80,000 / (1 + 0.12)^2) = -$852,647.63
FW(W) = -$1,350,000 - ($25,000 / (1 + 0.12)) - ($25,000 / (1 + 0.12)^2) - ... - ($25,000 / (1 + 0.12)^4) + ($120,000 / (1 + 0.12)^4) = -$1,226,477.41
Process T has the highest future worth (-$852,647.63), indicating the lowest overall cost compared to Process W. Therefore, Process T should be selected.
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Which of the following statements
best describes retained earnings?
A Ownership shares possessed by owners
B. Profits not distributed to owners
C Dividends received by owners
Answers
Bing. Incorporated, has current assets of $5,000, net fixed assets of $23,800, current
liabilities of $4,000, and l&ng-term debt of $8,900. a. What is the value of the shareholders' equity account for this firm? (Do not round
intermediate calculations.)
b. How much is net working capital? (Do not round intermediate calculations.)
Answers
To calculate the value of the shareholders' equity account, we need to subtract the total liabilities from the total assets.
a.) Shareholders' Equity = Total Assets - Total Liabilities
Total Assets = Current Assets + Net Fixed Assets
Total Assets = $5,000 + $23,800 = $28,800
Total Liabilities = Current Liabilities + Long-term Debt
Total Liabilities = $4,000 + $8,900 = $12,900
Shareholders' Equity = $28,800 - $12,900 = $15,900
Therefore, the value of the shareholders' equity account for this firm is $15,900.
b.) Net Working Capital is calculated by subtracting current liabilities from current assets.
Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = $5,000 - $4,000 = $1,000
Therefore, the net working capital for this firm is $1,000
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