CASE STUDY 3 : SMOKING AT IKE’S BAR-B-Q PIT
By 2013, only 10 states in the U.S. had not issued statewide bans on smoking in any nongovernment-owned spaces. Ike’s Bar-B-Q Pit is located in a state that allows smoking in restaurants and bars. Some of Ike’s nonsmoking customers, including some who suffer from asthma, have petitioned Ike to adopt a no-smoking rule for his restaurant. Upon hearing of the petition, some of Ike’s other customers complained that they have smoked in Ike’s restaurant for years and would not patronize the restaurant if the no-smoking rule were adopted. Ike is greatly concerned because he does not wish to lose business from either his smoking or nonsmoking customers.
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Private Solutions to Externalities: The Coase Theorem Learning Objective: Discuss the Coase theorem and explain how private bargaining can lead to economic efficiency in a market with an externality. Although government intervention may increase economic efficiency in markets where externalities are present, it is possible for people to find private solutions to the problem of externalities. Ronald Coase made this argument in a 1960 article. To understand Coase’s argument, it is important to understand that completely eliminating an externality is usually not economically efficient. A. The Economically Efficient Level of Pollution Reduction The optimal decision is to continue any activity up to the point where the marginal benefit equals the marginal cost. This applies to reducing pollution just as much as other activities. As pollution declines, society benefits, but the marginal benefit from eliminating another unit of pollution declines as emissions are reduced. As pollution declines, the marginal cost of further reductions rises. The net benefit to society from reducing pollution is equal to the difference between the benefit of reducing pollution and the cost. To maximize the net benefit to society, any type of pollution should be reduced to the point where the marginal benefit from another ton of reduction is equal to the marginal cost. B. The Basis for Private Solutions to Externalities In arguing that private solutions to the problem of externalities were possible, Ronald Coase emphasized that when more than the optimal level of pollution is occurring, the benefits from reducing the pollution to the optimal level are greater than the costs. C. Do Property Rights Matter? Ronald Coase pointed out that the amount of pollution reduction will be the same whether polluters or the victims of pollution are legally liable for damages. Bargaining between the parties will result in the same reduction in pollution, where the marginal benefit of the last unit of reduction is equal to the marginal cost. D. The Problem of Transactions Costs There are frequently practical difficulties in the way of a private solution to the problem of externalities. For example, if many people suffer from the negative effects of pollution, bringing all the victims together with all the producers of the pollution to negotiate an agreement often fails due to high transactions costs. Transactions costs are the costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services. E. The Coase Theorem The Coase theorem is the argument of economist Ronald Coase that if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities. Private bargaining is most likely to reach an efficient outcome when the number of bargaining parties is small and all parties are willing to accept a reasonable agreement. |
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Because Ike’s restaurant is not in a state that regulates smoking in public places, Ike decides to meet with his smoking and nonsmoking customers to accommodate both of their wishes regarding his smoking policy.
In: Economics
Two frictionless “hoverpucks” (puck 1 and puck 2) with mass 0.20 kg are travelling on a collision course with a third hoverpuck which is at rest and has mass 0.40 kg. Before they collide, puck 1 has velocity (1.0 m/s) î – (1.0 m/s) ĵ. After the collision they all stick together and have velocity (2.0 m/s) î + (0.5 m/s) ĵ. Friction is negligible.
a) What is the velocity of puck 2 before the collision?
b) What is the total impulse on puck 1 during the collision?
c) If the duration of the collision was 0.15 s what was the average force exerted by puck 3 on puck 1?
d) How much kinetic energy is gained or lost by the three-puck system?
In: Physics
A block of mass m = 2.00 kg is released from rest at h = 0.400 m above the surface of a table, at the top of a ? = 40.0
In: Physics
A candidate for mayor in a small town has allocated $40,000 for last-minute advertising in the days preceding the election. Two types of ads will be used: radio and television. Each radio ad costs $200 and reaches an estimated 3000 people. Each television ad costs $500 and reaches an estimated 7,000 people. In planning the advertising campaign, the campaign manager would like to reach as many people as possible, but she has stipulated that at least 10 ads of each type must be used. Also, the number of radio ads must be at least as great as the number of television ads. How many ads of each type should be used? How many people will this reach? This should be done in excel.
In: Math
Always when we want to represent the magnetic field of the earth we see a similar image:
enter image description here
My question is, what exactly does this show? What are the blue and orange lines, what do they represent? Why are they curved like that? I have a vague idea about field lines, but I do not fully comprehend this. An explanation would be appreciated
In: Physics
The atmosphere many times is related to the typical
In: Physics
Enter your answer in the provided box.
At a certain temperature and total pressure of 1.2 atm, the partial pressures of an equilibrium mixture for: 2A (g) <---> B (g))
are Pa = 0.60 atm and Pb= 0.60 atm. After a disturbance, the system regains the equilibrium with a total pressure of 1.7 atm. What is the partial pressure of A at the new equilibrium?
=_____ atm
In: Chemistry
In: Economics
What kind of physical features of a neuron affects its resonant frequency? How does it respond to high/low frequency input because of its feature and how does the feature contribute to the response?
In: Psychology
Problem Description:
Problem Description:
Write a program that obtains the execution time of Selection sort, Insertion sort, Merge sort for input size 50000, 100,000, 150,000, 200,000, 250,000, and 300,000. Your program should create data randomly and print a table like this:
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Array Size |
Selection sort |
Insertion sort |
Merge sort |
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50000 |
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100000 |
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150000 |
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200000 |
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250000 |
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300000 |
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2000000 |
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3000000 |
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4000000 |
(Hint: You can use the code template below to obtain the execution time.)
long startTime = System.currentTimeMillis();
perform the task;
long endTime = System.currentTimeMillis();
long executionTime = endTime - startTime;
Analysis:
(Describe the problem including input and output in your own words.)
Coding: (Copy and Paste Source Code here. Format your code using Courier 10pts)
Name the public class Exercise18_29
Testing: (Describe how you test this program)
In: Computer Science
1) Which is hottest? 200 F or 200 C or 200 Kelvin
2) Convert (- 40) C to Fahrenheit .
3) What is the hottest possible temperature?
4) Thermometers are used to measure temperature. There are many different types of thermometers. One type is based on a thermocouple . Briefly describe how a thermocouple works.
5) What is the recommended temperature for inside a residential refrigerator?
In: Physics
You are encouraged to research outside sources and, of course, cite them. Do not, however, quote sources word-for-word, but rather, respond to the Discussion Forum Question in your own words.
1. Identify four reasons that capital budgeting decisions by managers are risky.
2. Why is an investment more attractive to management if it has a shorter payback period?
3. Why should managers set the required rate of return higher than the rate at which money can be borrowed when making a typical capital budgeting decision?
4. Why does the use of the
accelerated depreciation method (instead of straight line) for
income tax reporting increase an investment’s value?
After you’ve completed the questions above, please provide a brief explanation of how this information is important in managerial decision making. (500 minimum word count, references excluded)
In: Accounting
A bicycle wheel has a diameter of 63.7 cm and a mass of 1.83 kg. Assume that the wheel is a hoop with all of the mass concentrated on the outside radius. The bicycle is placed on a stationary stand and a resistive force of 125 N is applied tangent to the rim of the tire.
(a) What force must be applied by a chain passing over a 9.10 cm diameter sprocket if the wheel is to attain an acceleration of 4.47 rad/s2?__________N
(b) What force is required if the chain shifts to a 5.50 cm diameter sprocket?___________ N
In: Physics
C#
To write a program using a stack and a program using a queue.
Code a class encapsulating a queue of foods using a circular array. A food has the following attributes: name, the number of calories per serving and the number of servings per container. Limit your queue to 20 food items. In addition to writing the enqueue, dequeue, and peek methods, you will write two more methods: a method that returns the average calories per serving of all the foods in the queue; a method that returns the food items with the highest total calories (ie: number of calories per serving * servings per container). Write a program to test your queue with all these methods
In: Computer Science
In: Biology