It May Be Easy for Two Neighbors to Agree to Drain

question 6

Multiple Choice

It may be easy for two neighbors to agree to drain a meadow, which they possess in common, to grow crops. However, when the meadow is much larger and reaches thousands of people, the solution is more difficult because

• A) decision making is nearly impossible with so many people.
• B) factions would form that would ultimately destroy the meadow for everyone.
• C) the problem of the tyranny of the majority would be impossible to control.
• D) the people involved would suffer from the free rider problem.

Apply microeconomic principles to optimization problems in business (e.g., parking spaces, product pricing).

Evaluate strategies for maximizing store traffic through pricing and services.

Understand the principles of capacity pricing in service industries.

Assess pricing strategies for new product offerings.