In the City of Alvarez, with the Exception of Guide

question 220

Multiple Choice

In the city of Alvarez, with the exception of guide dogs for blind people, all dogs are banned from its three public parks, regardless of whether the animals are leashed.Many residents are pushing for a change in policy.Canine lover Sara Northridge observed, "There are 800 or more homes here.There are three parks within 10 minutes, and almost everyone has a dog, but we can't take our dogs there." Others fear that allowing dogs would detract from their enjoyment of the parks.Tim Cortis retorted, "We're not preventing dog lovers from enjoying the park, just come without your dog." Which of the following is a way of dealing with the problem by assigning property rights to a particular group?

• A)impose a two-tier entry fee system-a lower fee for non-dog owners and a higher fee for dog owners
• B)impose a fee only for dog owners to use the public parks; non-dog owners do not pay a fee
• C)dedicate some parks, or at least one park, exclusively for the use of visitors bringing dogs to the park
• D)allow dog owners to bring their dogs to the park but insist that they keep watch over their dogs

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Definitions:

Net Operating Income

The income derived from a firm's core business operations, not including taxes and interest expenses.

Contribution Margin Ratio

A ratio that measures the percentage of sales revenue remaining after deducting variable costs, indicating the portion of sales available to cover fixed costs and generate profit.

Variable Expense Ratio

A ratio computed by dividing variable expenses by sales.

Break-even Analysis

A calculation to determine the sales volume at which total revenues equal total costs, indicating no profit or loss.