I am sure you have heard musicians performing on NYC subway platforms. Do these performers face...

I am sure you have heard musicians performing on NYC subway platforms.

Do these performers face a free-rider problem? If yes, how do they try to reduce this problem?

Expert Solution

Yes, I have heard about musicians performing on NYC subway platforms, also I have seen them & performers like The Meetles, Streetmule or The Saw Lady are my favorite.

To know if these performers face a free rider problem which later leads to market failure, we first need to understand what is free rider problem is?

The Free Rider Problem occurs when an individual or a group receives the benefit of a good (generally a public good) but avoids paying for it. It is a problem because public goods are neither excludable nor rivalrous which means people cant be stopped by using these goods & it is there choice whether they opt for paying it for or not. True free rider scenerio occurs when there is no way to limit the free riders (consumers) from accessing to the (free) product.

Let's come to the musicians performing on NYC subway platforms. Questions to be raised

Do musicians need to pay for performing? A. No, in NYC the permit is free of cost. That means they are consuming the subway platforms free of cost.
How many street musicians perform in NYC subway platform? A. Acc. to MTA, there are 228 artists registered (hand picked to perform in 30 most popular subway spots). Although anyone can play in the subway as long as they follow MTA’s Transit Rules of Conduct. So sample size is not as large as compared to 2.4 million people ride subway daily on an average.

In this case market failure occurs when

No public giving money to performers, all are using it freely
No one can limit anyone else's consumption
And because of above two no one using private entertainment performances of artists.

But practically speaking musicians get paid because there is demand of it as consumers like it after there hard day at work. They get rejuveneted after hearing it. Even out of millions of people, some people give couple of dollars to them. Performers get good amount of money. Neither there is unlimited consumption because of crowd in subway.

So, there is no possibility of true free ride problem scenerio, because of above said reasons.

Rahul Sunny answered 1 year ago

I am sure you have heard the saying that goes something like why fix what isn't...

I am sure you have heard the saying that goes something like why fix what isn't broken, but how will you know if it is broken. Policies and procedures are usually seldom reviewed once implemented which can prove to be disastrous. Explain why and how often a facility should review and update the security policy.

I have homework on this but I am not sure how to solve it and which...

I have homework on this but I am not sure how to solve it and which formula to use in excel, can u please help me Rebecca is considering buying a 2019 Genesis G70 costing $37,900 and finds that the retaining values of the vehicle over the next four years are as follows: Percent of the total value retained after 24 months: 71% Percent of the total value retained after 48 months: 53% If her interest rate is 5% compounded...

I am sure you know that your car insurance premiums will be lower if you have...

I am sure you know that your car insurance premiums will be lower if you have had no moving violations for couple of years. Explain how this feature decreases the potential inefficiencies caused by adverse selection.

I am not sure where, to begin with, this problem... "You have found the following historical...

I am not sure where, to begin with, this problem... "You have found the following historical information for DEF Company: Year1 Year 2 Year 3 Year 4 Stock Price $46.29 $49.74 $54.55 $57.07 EPS $2.04 $2.9 $2.81 $3.78 Earnings are expected to grow at 8 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year?"

I'm not sure if I am able to do these in excel, but if so what...

I'm not sure if I am able to do these in excel, but if so what are the functions for them? (2 pts) The weights of 8-week-old French Bulldog puppies follow a normal distribution. What percent of puppies weigh more than 2.35 standard deviations below the mean? (4 pts) If a Chevy Trailblazer lasts for an average of 170,000 miles and a standard deviation of 25,000 miles, assuming mileage follows a normal distribution, what is the probability that the Trailblazer...

I have a concept question that I am not sure how to answer: ABC Company is...

I have a concept question that I am not sure how to answer: ABC Company is in the process of preparing a budget for the upcoming year. The marketing department has just increased the number of units in the sales budget by a significant 50% as compared to the last sales budget that was prepared for the year. Explain the impact this change will have on the Cash Budget. Be specific about… how the components of the Cash Budget will...

I am not quite sure what this question is asking, nor do I understand how to...

I am not quite sure what this question is asking, nor do I understand how to apply the lower-of-cost-or-NRV. The controller of Alt Company is applying the lower-of-cost-or-net realizable value basis of valuing its ending inventory. The following information is available: Cost Net Realizable Value Lawnmowers: Self-propelled $14,800 $17,000 Push type 19,000 18,000 Total 33,800 35,000 Snowblowers: Manual 29,800 31,000 Self-start 19,000 21,000 Total 48,800 52,000 Total inventory $82,600 $87,000 Compute the value of the ending inventory by applying the...

I am not sure how to approach this. You are managing a bake sale for a...

I am not sure how to approach this. You are managing a bake sale for a club at your school. It’s being held each weekend in the fall that the football team has a home game. This year, there will be five home games. The club sells cookies in packages of two dozen. The selling price per package is $8.65. The packaging material costs $.11 (11 cents) per package. You pay the regular kitchen staff a direct labor cost for...

I am not understanding how to do this in excel, I have half of it, but...

I am not understanding how to do this in excel, I have half of it, but not sure where to put the 1100, 2900, 2400, 1500. Questions asked are a plus. M4_A1. Edsel Motors produces cars in Los Angeles and Detroit. The company supplies cars to customers in Houston and Tampa. The costs of shipping a car between various points shown in the table below. The dashes in the table indicate a shipment between locations that is not allowed. Los...

Bribing Your Way Into Big Name Colleges I am sure many of you have been following...

Bribing Your Way Into Big Name Colleges I am sure many of you have been following the news about parents bribing universities and colleges to admit their children. Here is one of the first articles about how parents engage in all kinds of activity, some legal, some not, to make sure their children get into prestigious schools. Since then, many of the parents have pled guilty and gone to jail. Being the first and only person in my family to...

Question