When a Smart Contract Pays Out Money

question 51

Multiple Choice

When a smart contract pays out money:

• A) it's good to use a push over a pull method.
• B) it's good to use a push and a pull method to ensure that participants can get their money no matter the contract state. In addition to and pushing it should contain a withdraw method.
• C) it's good to use only pull and no push method.

Understand the role and impact of patent protection in managing technology spillovers.

Comprehend the concept of externalities and their effect on market equilibrium, including positive externalities.

Grasp the inefficiency of prohibiting all polluting activities and the concept of the optimal level of pollution.

Recognize the efficiency of corrective taxes over regulations in environmental protection.

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, or insurance premiums.

Break-Even Quantity

The amount you need to sell to at least break even (make zero profit). The formula (assuming that you can sell all you want at price and with constant marginal cost) is Q = F/(P - MC), where F is fixed costs, P is price, and MC is marginal cost.

Zero Profits

Zero profits, or normal profit, occur when a company's total revenues exactly match total costs, leaving no net profit or loss.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.