5. Alfie, Bill, and Coco each value police protection differently. Alfie's demand for the public good is Q=55-5P, Bill's demand is Q=80-4P, and Coco's demand is Q=100 -10P. The marginal cost of providing police protection is $13.5. a. What is the socially optimal level of police provision? b. If each voter pays one-third of the total bill for police protection, how much will each voter wish the community to buy? c. If the median voter wins, how much will the community buy?

Q: "Money is debt."  Critically evaluate.

A: Money: - money is an object that measures the value of goods and services in an economy and also…

Q: What is the purpose of using the Internal Revenue Service (IRS)?

A: Internal revenue service is a government legal agency of the United States that is responsible for…

Q: A main difference between using cigarettes and using dollars as money is that    have intrinsic…

A: Intrinsic value : The inherent value of an object or commodity that is not based on its monetary or…

Q: What is the difference between Market and Inflation-Free Interest Rates?

A: Market and inflation free interest rate are entirely different concepts. Market is the place that…

Q: Compare credit, savings, and investment services available to the consumer from financial…

A: Financial institutions, which include lenders, financial agencies, insurers, and securities dealers,…

Q: How does the Federal rate affect mortgage rates?

A: A mortgage is simply a house loan and a mortgage rate is the interest rate on such a loan. Through…

Q: Are there ways in which money in our society performs social functions as well as economic…

A: Money can be defined as any good that is widely accepted for the purpose of final payment of goods…

Q: Can we trust financial intermediaries?

A: In most cases, financial intermediates function as middlemen in transactions involving banks or…

Q: why do we need banks and financial institutions

A:

Q: How does changing the inflation rate affect the required quarterly savings plan?

A: The increase in the price level of goods and services is known as the situation of inflation. This…

Q: Write a post that explains why money is not the universal measure of all value.

A: Money is the major consideration for all the people in today’s world. Without money the people…

Q: How would you determine the interest rate that the bank charges on the transaction?

A: Many payments are made through our bank accounts and each transaction has a cost attached to it. The…

Q: Do the financial institutions usually quote the interest rate on an annual basis?

A: The interest rate is a specific percentage of principal that must be paid by a borrower of money to…

Q: How does Micro Credit differ from money center banks?

A: Introduction Microcredit is a type of microfinance that essentially gives an individual a very…

Q: how is money created?

A: In economics, money is a tool or a set of assets in the economy through which goods and services are…

Q: I want to know the background of cashless economy. Like how it is start and the influence in the…

A: Sometimes the cashless economy is misunderstood with an economy without cash. Cashless economy has…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.