Miguel is vice president of marketing at xyz corp. He is disappointed to learn that the vice president of sales at xyz earns 20 percent more than he does despite the two positions having similar levels of responsibility and impact. In this example, what method is miguel using to evaluate the fairness of his pay?

Answers

Answer 1

Miguel holds the position of vice-president of marketing at xyz Corp. Because Miguel ended up having $35 more so than he did, he is unsatisfied.

What are the many types of marketing?

The 4 P are a "combination of strategies" that includes four crucial elements for selling a product or service product, price, place, and marketing. Businesses frequently consider the four Ps when creating plans and objectives for reach their intended audiences.

What is an effective marketing example?

In a word, it is an effort to make customers aware of a business's offers, which can include both physical goods for sale or services rendered. Advertising on television, on billboards along the highway, and in magazines are all common examples of marketing in action.

Briefing

He spends $35 × 4 = $140.

He earns $21 × 5 = $105.

His net increase is $105 -140 = -$35.

Miguel ends up with $35 less than he started with.

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Related Questions

how does marmite use product differentiation

Answers

Marmite use product differentiation as viewed as having unique features, such as Marmite or the iPhone. It frequently referred to as a differentiator.

What do you mean by the product differentiation?

The feature or features that set your product or service apart from the competition for your target market are known as product differentiation.

It improves brand loyalty, sales, and growth by highlighting the differences between what you sell and what your rivals provide. These comprise vertical differentiation, mixed differentiation, and horizontal differentiation.

In the financial situation of today, product differentiation is crucial. It enables the seller to highlight the distinctive qualities that make their product outstanding by drawing comparisons between their own product and those of the market's rival products.

Therefore, Marmite use product differentiation as viewed as having unique features, such as Marmite or the iPhone. It frequently referred to as a differentiator.

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How cash inflow and outflow affects the components of a financial plan

Answers

Budgeting depends on cash inflow and​ outflow, and how much you have left affects investment​ decisions, retirement​ decisions, and financing decisions. ... All financial goals must be reasonable and achievable.

On March 25, 2014, Patton Company sold merchandise on account,$10,000. The applicable sales tax percentage is 8.5%. Record the transaction.

Answers

Answer:

Kindly see attached picture

Explanation:

Sales tax percentage= 8.5%

Sales = 10,000

Sales tax payable = 0.085 × 10000 = 850

Accounts payable = 10000 + 850 = 10850

Kindly see attached picture for journal entry

On March 25, 2014, Patton Company sold merchandise on account,$10,000. The applicable sales tax percentage

write the key points about a teacher's role
can someone pls help me??​

Answers

classroom instruction to help students learn. Planning, preparing, and delivering lessons, giving feedback, helping students want to learn, and supporting.

What is a source of equity financing?


A. securing short-term loans from a family member

B. receiving trade credit from suppliers

C. selling personal assets to raise funds

D. securing government loans

E. borrowing money from friends

Answers

The answer is B because I done my research online and I did my calculations and according to my calculations that’s the andwer

how much does an tablet get fix in brooklyn new york?

Answers

The nature and severity of the damage, as well as the repair facility choose, all affect how much it will cost to fix a tablet in Brooklyn, New York. It is preferable to look up nearby repair services and request a price depending on your unique requirements.

How much does a tablet repair cost?

Android tablets, like iPads and other Apple tablets, can have cracked displays, touchscreen problems, bad batteries, and other issues that can be fixed.

What is the price of repairing a cracked tablet screen?

The cost of replacing a tablet's touchscreen can increase by $50 to $75. It is far less expensive to replace the damaged glass with a touchscreen that works. Online providers are typically available for $6 to $20.

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assume that for several years fister links products has held microsoft bonds, considered by the company to be securities available-for-sale. the bonds were acquired at a cost of $530,000. at the end of 2024, their fair value was $646,000 and their amortized cost was $540,000. at the end of 2025, their fair value was $637,500 and their amortized cost was $550,000. at what amount will the investment be reported in the december 31, 2025, balance sheet? what adjusting entry is required to accomplish this objective (ignore interest)?

Answers

The investment in Mic-rosoft bonds will be reported on the December 31, 2025, balance sheet at a fair value of $637,500.

This is because the investment is classified as available-for-sale and therefore, changes in the fair value are recognized in other comprehensive income until the investment is sold. To adjust the investment to its reported fair value, an adjusting entry is required. The entry would include a debit of $12,500 to Unrealized Holding Gain or

Loss (OCI) - Equity, and a credit of $12,500 to Available-for-Sale Securities. The calculation for the adjusting entry is as follows: Fair Value Adjustment = Fair Value at the end of the period - Amortized Cost Fair Value Adjustment \(= $637,500 - $550,000\) Fair Value Adjustment = $87,500 Therefore, the adjusting entry would be: Debit: Unrealized Holding Gain or Loss (OCI) - Equity $12,500 Credit: Available-for-Sale Securities $12,500

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Which of these people is part of the labor force?

A.
an eighth-grader with a paper route

B.
a retired salesperson

C.
a full-time college student

D.
an auto mechanic

Which is the best example of frictional unemployment?

A.
a plumber’s contract with an apartment building ending

B.
college graduates looking for their first jobs after their internships

C.
workers being laid off during a period of recession

D.
a company moving to another state, leaving its workforce without jobs

Which are ways that the economy is affected when the unemployment rate goes up? Select the two correct answers.

A.
Fewer people pay income taxes.

B.
Sales tax rates go down.

C.
Many people refinance their houses.

D.
Less money is spent on investments.

E.
People spend more money on larger items.

Which is the most likely result of incomes not rising as quickly as inflation?

A.
People are able to buy fewer goods and services.

B.
The unemployment rate rises as more people look for jobs.

C.
Many people decide to leave the labor force.

D.
Consumers buy more goods before inflation raises prices more.

How has the standard of living in the United States generally changed over the past 100 years?

A.
It has stayed more or less the same.

B.
It has gotten much better.

C.
It has gotten a little better.

D.
It has gotten much worse.

Answers

The people that is part of the labor force is option D: an auto mechanic

The best example of frictional unemployment is option D: a company moving to another state, leaving its workforce without jobs

The ways that the economy is affected when the unemployment rate goes up are option B and C:

Sales tax rates go down.Less money is spent on investments.

The most likely result of incomes not rising as quickly as inflation is option  B: The unemployment rate rises as more people look for jobs.

The way the standard of living in the United States generally changed over the past 100 years is option B: It has gotten much better.

What do the terms "labor force" and "work force" mean?

The labor force is the whole population that is actively seeking employment. It is measured in terms of the number of days and is independent of wage rates. The workforce is the total number of people who are really employed.

Short-term unemployment includes frictional unemployment. When someone actively seeks a job or a new career, they are said to be in a frictional state of unemployment. Unemployment that is only intermittent isn't always a terrible thing. In fact, since it's voluntary, frictional unemployment may be a sign of a strong economy.

Hence, the term "workforce" or "labor force" refers to the group of people who are either employed or unemployed and an auto mechanic is a  good example of it.

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Answer:

The answers are 1. D 2. B3. A and D4. A 5. B 

Explanation:

! I'm here to help, and hopefully it's helpful, even though it's probably LATE. I do however apologize for this being a late answer to this question. I'm so very sorry if this isn't helpful.

How do you earnmoney as a 12 year old legally

Answers

Answer:

You can't work but you could do stuff for your parents and your neighbors and get money for doing it.

Explanation:

The most you could do is probably sit tight and wait for an allowance.

what are the major works of JT? Explain in point.......​

Answers

The JT data model is capable of representing a wide range of engineering data. This data can be very lightweight, holding little more than facet data or it can be quite rich, containing complete NURBS geometry representations along with product structure, attributes, meta data and PMI. It also supports multiple tessellations and level-of-detail (LOD) generation.

The market for sweet potatoes consists of 1,200 identical firms.
Each firm has a short-run total cost curve of = 6 +
102 where q is the number of bushels of sweet potatoes
per month in tho

Answers

The short-run total cost curve for each firm in the market for sweet potatoes is given by TC = 6q + 102, where q represents the number of bushels of sweet potatoes per month.

In the short run, total cost (TC) consists of both fixed costs (FC) and variable costs (VC). The fixed costs do not change with the level of output, while the variable costs vary with the quantity produced.

The given short-run total cost curve is TC = 6q + 102, where 6q represents the variable costs and 102 represents the fixed costs.

To calculate the average total cost (ATC) and marginal cost (MC) for each firm, we need to know the output level. Let's assume a specific output level of q = 100 bushels.

Average Total Cost (ATC):

ATC is calculated by dividing total cost (TC) by the quantity produced (q).

ATC = TC / q

Substituting the given TC equation, we get:

ATC = (6q + 102) / q

ATC = (6 * 100 + 102) / 100

ATC = (600 + 102) / 100

ATC = 702 / 100

ATC = 7.02

Therefore, the average total cost for each firm producing 100 bushels of sweet potatoes per month is 7.02.

Marginal Cost (MC):

MC is calculated by taking the derivative of the total cost (TC) function with respect to quantity (q).

MC = dTC / dq

Differentiating the given TC equation, we get:

MC = d(6q + 102) / dq

MC = 6

Therefore, the marginal cost for each firm producing sweet potatoes is constant at 6.

In the market for sweet potatoes, each identical firm has a short-run total cost curve given by TC = 6q + 102. The average total cost (ATC) for each firm depends on the quantity produced (q), while the marginal cost (MC) is constant at 6.

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Because Toyota's investment eventually increases the level of R&D spending for his given level of sales revenue what would the effect on Toyota's return on invested capital (ROIC)?

Answers

Available Options Are:

a. Increasing ROIC by increasing return on sales

b. Decreasing ROIC by increasing return on sales

c. Decreasing ROIC by decreasing return on sales

d. Increasing ROIC by decreasing return on sales

Answer:

Option C. Decreasing ROIC by decreasing return on sales

Explanation:

The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:

ROCI  =  Operating Income (1 - Tax Rate) / Book Value of Invested Capital

As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numerator would be decreased and as a result the ROIC would decrease.

can someone recommend me some research topics for economics.would really appreciate if it is in a list​

Answers

Explanation:

here are some research topics for economics::

1. The effect of income changes on consumer choices

2. The effect of labor force participation on the economy and budget – A comparison

3. The impact of marital status on the labor force composition: A case of [your country] economy

4. The difference in the consumption attitude in [your country] over the last decade – Critical analysis of consumer behavior trends

5. The relationship between salary levels and ‘economic convergence’ in [your country]?

6. Analyzing salary inequalities in [your country] and the forces behind such inequalities.

7. The evolution of consumption in [your country] over the last 10 years: Trends and consumer behavior.

8. Dynamics of the Gini index as a reflection of the problem of inequality in income 

9. Cashless economy: The impact of demonetization on small and medium businesses

10 Privatization of Public Enterprises and its implications on economic policy and development

why were steamboats a crucial innovation as the united states expanded westward in the early 19th century?

Answers

On the majority of navigable rivers, steamboats were shortly introduced. They promoted trade by reducing costs and saving time by allowing both upstream and downstream movement and commerce.

How did the steamboat aid in the westward migration?

By offering better access to markets at a reduced cost, [steamboats] encouraged the agricultural economy of the western world. Since they could now easily send their produce out, farmers immediately purchased land near navigable rivers.

Why did the development of the steamboat matter?

Steamboats significantly decreased the amount of time and money needed to transport commodities to far-off markets when compared to other forms of craft at the time, such as flatboats, keelboats, and barges. They therefore had a significant role in the development and stabilization of the American economy prior to the Civil War.

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margaret is analyzing the current year income statement and the comparative balance sheet in order to prepare the statement of cash flows. she should expect the operating cash flows to be the amounts reported in the income statement.

Answers

Net income from the bottom of the income statement links to the balance sheet and cash flow statement.

An profits announcement or earnings and loss account is one of the financial statements of a company and shows the enterprise's revenues and charges in the course of a specific length. It shows how the sales are converted into net profits or net earnings.

An earnings announcement indicates a company's revenues, charges, and profitability over a period of time. it's also from time to time called an income-and-loss announcement or the announcement of a profit. It suggests your: sales from selling products or services. charges to generate revenue and manage your commercial enterprise.

The income declaration suggests a business enterprise's expenses, profits, profits, and losses, which can be put into a mathematical equation to arrive at the net earnings or loss for that time period. These statistics allow you're making well-timed choices to make certain that your commercial enterprise is on an excellent economic footing.

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A good system of internal control is designed to achieve each of the following, excepta. efficiency of operations.b. reliability of financial reporting.c. compliance with relevant laws and regulations.d. attainment of target sales

Answers

A good system of internal control is designed to achieve:

a. Efficiency of operations: This involves improving the effectiveness of business processes and ensuring the optimal use of resources.
b. Reliability of financial reporting: This ensures that financial information is accurate, consistent, and reliable for decision-making purposes.
c. Compliance with relevant laws and regulations: Internal control systems help organizations adhere to applicable laws, rules, and guidelines to avoid penalties and maintain a positive reputation.

However, it does not primarily focus on:

d. Attainment of target sales: While a good system of internal control can indirectly support this goal by improving efficiency and compliance, it is not a direct objective of internal control. Sales targets are mainly achieved through marketing strategies, sales initiatives, and other business development efforts.

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Do businesses receive a water grant?​

Answers

Answer:

Energy and Water funding is a crucial part of the UK government’s carbon emissions responsibility. Finding new ways of funding lower emission energy systems for business is one of the ways that the UK are pushing forward.

Water Capital Grant Scheme

The Water Capital Grant Scheme provides funding of £10 Million to applicants from the farming community, from the land management community and from the agricultural community to deal with water management which is a key issue in the industry. Those running businesses in these areas are able to avail of this scheme and create in-roads in water management.

This is designed to provide support to water management, and will provide £10,000 in a water capital grant to help carry out works which will improve water management and quality. The real focal point of the grant is to improve waterlines around agricultural industry and to reduce the impact of agriculture on the water quality of the surrounding area. The funding is for new projects which will help to move toward this goal, and applicants are able to apply for this through Natural England.

The Water Capital Grants scheme works in accordance with the woodland capital grant scheme, which creates the first of the new Stewardship Scheme from the government. This scheme will be committing £900 million to working with natural resources and protecting and benefiting the resources in the environment. Applicants to this scheme can avail of grant funding to really bring water usage in their business to a better level.

There are a whole range of funding options and projects which are eligible. Some of these are:

installing biobeds

preventing livestock access to watercourses by erecting watercourse fencing

providing drinking troughs as an alternative to watercourse drinking for livestock

relocation of sheep dips and pens

roofing of sprayer washdown areas, manure storage areas, livestock gathering areas, slurry stores and silage stores

Funding will be competitive with grants awarded to applications that best meet the scheme’s priorities and have the greatest environmental benefit.

The new water grants build on the successful Catchment sensitive farming initiative, which between 2013 and 2016 helped over 6,200 farms across the country benefit from a total of £72 million in grant funding to improve water quality and reduce pollution from agricultural activity. The water capital grants scheme under Countryside Stewardship will be managed and delivered through Catchment Sensitive Farming in 2018.

Work funded by the Catchment Sensitive Farming grant scheme over recent years has already brought efficiencies for thousands of farmers and has enhanced local environments throughout England by improving water quality.

Explanation:

(d) State how the double entry would be completed for the items recorded in the ledger accounts
column of the petty cash book.

Answers

The general ledger's expense account is debited for the sum of each expense column.

How does a general ledger work?

An organization employs a general ledger, which is a group of numbered accounts, to record its financial activities and generate financial reports. A unique record detailing a particular kind of asset, risk, equity, revenue, or expense makes up each account.

Which five categories of accounts for general ledgers are there?

Accounts receivable, a commodity account, represents money owed to your business. Accounts payable refers to money that your business owes to creditors for expenses. Cash: Easily convertible assets held by your company, such as accounts and owner' equity.

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managed correctly, the proactive phase of the conflict management life cycle can

Answers

Managed correctly, the proactive phase of the conflict management life cycle can help prevent conflicts from escalating and promote a positive work environment.

During the proactive phase, organizations can take several steps to address potential conflicts before they arise:

Establish clear communication channels: Effective communication is crucial in preventing conflicts. By establishing open lines of communication and promoting transparency, employees can express their concerns and address issues before they become major conflicts.

Implement conflict resolution training: Providing employees with conflict resolution training equips them with the skills and strategies to manage conflicts constructively. Training programs can focus on effective communication, active listening, negotiation, and problem-solving techniques. Foster a positive organizational culture: Creating a positive work environment where respect, collaboration, and teamwork are valued can significantly reduce the occurrence of conflicts.

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To locate the explanation of the colors on a map, you should look for a a. Compass c. Key b. Scale d. Chart Please select the best answer from the choices provided A B C D

Answers

Answer:

C. Key

Explanation:

Answer:

key

Explanation:

The items below list several e-mail practices. If the practice describes something workers should do when using e-mail for business purposes, select Do. If the practice describes something workers should not do when using e-mail for business purposes, select Don't.


include a signature.


include lots of exclamation marks to get your point across.


include the thread of previous messages.


make e-mail messages brief.


always mark messages as urgent so your e-mails will be read first.


use a relevant subject line.


use all capital letters when the message is urgent.

Answers

Answer:

do

don't

do

do

don't

do

dont

Gunnar, the Director of Operations at Fantastic Foods, has worked with other managers over the years to set up groups and teams to handle issues. One of the recent groups, which is also a team, is the

Answers

If Gunnar, the Director of Operations at Fantastic Foods.  One of the recent groups, which is also a team, is the dean search committee.

What is team?

Team are member of a group that come together in unity to resolve issue  and to achieve their set goals and objectives.

The recent group will be the dean search committee which aim is to interact or  communicate  frequently by making use of different communication  means over a period of several months.

Therefore  One of the recent groups, which is also a team, is the dean search committee.

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What needs to happen to the money supply to recession?

Answers

Answer:

In order for your money suppy to recession you need credit.

Explanation:

Your credit needs to be good.

what is the impact of atm on banking sector? ​

Answers

Answer:

Explanation:

ATM s are of great use to the banks as the reduce the number of people storming the banks for withdrawal of money as well as deposit of money it reduces cost of operation and from customer point of view it is available easily near by hence travelling further distance to the bank is not required

ATMs are one of the most convenient services provided by the banks to customers. It is beneficial to banks as it is to its customers. It helps banks to save cost and time in withdrawing money and various other services which are now provided by ATM.

Automated teller machines, or ATMs as they are more commonly referred to, are a convenient way to conduct one-on-one transactions quickly and easily. One can do self-serviced transactions with these machines without a physical teller's aid or a trip to the bank branch. Cash withdrawals, cash deposits, and fund transfers are just a few of the many transactions possible with automated teller machines, or ATMs. Although the majority of customers only use ATMs to withdraw cash, these additional transactions make the service more effective.

With the advent of the ATM, users' financial lives became simpler because they could now perform simple transactions on their own with the aid of an ATM, which was much more practical than often visiting the bank. The ability for users to transact between banks is another significant advantage of an ATM. This means you can still use basic services like cash withdrawals from the ATM even if you don't have an account with the bank that runs the machine. Again, this saves you time and comes in handy in an emergency because you won't need to go to the ATM at your bank every time you need a quick infusion of cash. ATM helps banks operate more cheaply by lowering the number of human operations. The ATM provides service 24 hours a day which means customers can avail of money and other services at any time of the day.

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the hill company produced 5,000 units of x. the standard time per unit is 0.25 hours. the actual hours used to produce 5,000 units of x were 1,350 hours. the standard labor rate is $12 per hour. the actual labor cost was $18,900. what is the total direct labor cost variance?

Answers

The total direct labor cost variance for producing 5,000 units of X is $3,900.So, the total direct labor cost variance is $3,900.

The total direct labor cost variance can be calculated as follows:

Standard hours for 5,000 units = 5,000 units x 0.25 hours per unit = 1,250 hours
Standard direct labor cost = 1,250 hours x $12 per hour = $15,000
Actual direct labor cost = $18,900

Direct labor cost variance = Actual direct labor cost - Standard direct labor cost
Direct labor cost variance = $18,900 - $15,000
Direct labor cost variance = $3,900

Therefore, the total direct labor cost variance for producing 5,000 units of X is $3,900.


Based on the information provided, let's calculate the total direct labor cost variance using the given terms.

1. Calculate the standard hours allowed for the production:
Standard time per unit = 0.25 hours
Units produced = 5,000
Standard hours allowed = Standard time per unit x Units produced = 0.25 hours/unit x 5,000 units = 1,250 hours

2. Calculate the standard labor cost:
Standard labor rate = $12 per hour
Standard labor cost = Standard hours allowed x Standard labor rate = 1,250 hours x $12/hour = $15,000

3. Calculate the actual labor cost:
Actual labor cost = $18,900

4. Calculate the total direct labor cost variance:
Total direct labor cost variance = Actual labor cost - Standard labor cost = $18,900 - $15,000 = $3,900

So, the total direct labor cost variance is $3,900.

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when the invisible hand does not produce optimal outcomes for the economy, there is evidence of multiple choice government failure. macroeconomic failure. scarcity. market failure.

Answers

Market failure is the term used to describe a situation where the invisible hand of the market fails to produce optimal outcomes for the economy.

This failure can manifest itself in various ways, such as inefficient allocations of resources, the misallocation of resources, or the production of negative externalities. Examples of market failure include monopolies, externalities, incomplete markets, and public goods. Government failure, on the other hand, is the term used to describe situations in which government intervention fails to produce desired outcomes. Examples of government failure include inefficient regulation, mismanagement of funds, and overregulation. Scarcity is a situation in which limited resources are unable to meet the unlimited wants and needs of society.

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Which of the following would NOT cause a shift in supply? A. changes in the price of inputs B. changes in the price of other goods C. changes in consumer input D. changes in technology

Answers

Answer:

C.

Explanation:

The correct answer would be changes in consumer input.

The supply of a good can be influenced by changes in the price of inputs for that goods, changes in the price of substitute goods, as well as changes in technology that positively or negatively affect the production of such goods.

What will not affect the supply of any good is changes to consumer's input. An input generally referred to a substance that is required to produce an output. Unless the consumer of a good is also the producer of that good, a consumer's input will not impact the supply of a product.

The correct option is C.

Which of these is true about the national unemployment rale!
A. All citizens are included in the labor force.
B. All people 18 years or older are counted as part of the labor force.
C. It is always at 6%.
D. It is never at zero.

Answers

Answer:

D. It is never at zero.

Explanation:

The unemployment rate is described as the percentage of the labor force that is jobless but actively seeking work. The labor force comprises an adult population that is currently working or seeking employment.

The unemployment rate is never at zero. At every moment, there is frictional unemployment as people switch jobs or new college graduates seeking their first job. There is also unemployment due to economic seasons. Even when the economy is considered to be at full employment, the unemployment level is not at zero but at around 3 to 5 percent.

A mixed economy is a combination of what two types of economies?
O A. Market and traditional
O B. Command and traditional
O C. Communism and socialism
O D. Command and market

Answers

Answer:

Answer is D

Explanation:

Command and Market

A mixed economy is a combination of two types of economies, that is command and market. Thus, option D is correct.

What is mixed economy?

A mixed economy is an economic system that combines parts of a market economy with components of a central planning, markets with state foreign intervention, or industry with public enterprise. A blend of free-market and socialist concepts is shared by all mixed economies.

Governments own the factors of production and determine pricing and production schedules in a command economy. Prices in a market economy are determined by supply and demand. Most countries have either a command or a market economy, but both have elements of the other.

A mixed economy is a hybrid of two types of economies: command and market. As a result, option D is correct.

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Nicolas loves watching The Simpsons on his local public TV station, but he never sends any money to support the station during its fundraising drives.
a. What name do economists have for people like Charlie? Explain.
b. How can the government solve the problem caused by people like Charlie?
c. Can you think of ways the private market can solve this problem? How does the existence of cable TV alter the situation?

Answers

a. Economists refer to people like Nicolas as "free riders." This term is used to describe individuals who benefit from a public good or service without contributing to its funding or upkeep. In this case, Nicolas is enjoying the programming provided by the public TV station without providing any financial support. b. The government can solve the problem caused by free riders like Nicolas by implementing a tax or fee to fund the public good or service. This ensures that everyone who benefits from the public good or service contributes to its funding, regardless of whether they choose to do so voluntarily. c. The private market can also solve this problem by offering subscription-based services, such as cable TV, that require individuals to pay for access to programming. This creates a financial incentive for people to support the service, since they will not be able to access it without paying. The existence of cable TV provides an alternative to public TV stations, which may encourage people like Nicolas to pay for the programming they enjoy rather than relying on free options.

Economists refer to people like Nicolas, who watch public TV but don't make any contribution to the collections, like as "free riders."

What are Free Riders?

Free riders are people who benefit from a public good or service without contributing to its cost. In this case, Nicolas is enjoying the programming on his local public TV station without sending any money to support the station during its fundraising drives.

Government and free riders

One way the government can solve the problem caused by free riders like Nicolas is by implementing a tax or fee that everyone must pay in order to access the public good or service.

This ensures that everyone who benefits from the public good or service contributes to its cost. Another way the government can solve this problem is by making the public good or service a private good or service, meaning that only those who pay for it can access it.


Private market and cable TV

The private market can solve this problem by offering alternative goods or services that are similar to the public good or service, but require payment in order to access them.

For example, cable TV offers similar programming to local public TV stations, but requires a monthly subscription fee in order to access it. This creates an incentive for individuals to pay for the private good or service instead of relying on the public good or service without contributing to its cost.

The existence of cable TV can also create competition for the local public TV station, potentially encouraging the station to offer better programming or lower prices in order to attract viewers and support.

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