User Account

All Pages

What is the economic problem in this case

Assignment Help Business Economics
Reference no: EM132405041

In the famous case of Liebeck vs MacDonald's Stella Liebeck purchased a cup of coffee through the drive-in window at MacDonald's, spilling the contents in her lap. She suffered third degree burns and sued for damages. After Macdonald's rejected her initial offer of $20,000, the case went to trial. The jury awaded $160,000 in medical costs and $460 in punitive damages.

a. What is the economic problem in this case? Explain.

b. What kinds of precaution could be taken by each party? That is, what is in the opportunity set?

c. Explain the Hand rule in the context of this case. Give a specific example of a precaution and why it might or might not satisfy the Hand rule for negligence.

d. Explain the Coase theorem in the context of this case.

Reference no: EM132405041

Questions Cloud

Provide the basic difference of p-l and cash flow statement : Provide the basic difference of profit/loss statement and cash flow statement which includes meaning, purpose, objectives and importance of both.
Difference between an political and market entrepreneur : 1. What is the difference between an political and market entrepreneur? 2. Why was Vanderbilt more successful compared to Collins?
Explain the property right at issue : In Guille v Swan (1882) the plaintiff sued for damages to his vegetable garden. It seems that the defendant accidently landed a hot air balloon in the garden
Determine whether an expenditure is an asset or expense : Discuss how to determine whether an expenditure is an Asset or an Expense to the organization. The response paper should be in APA format.
What is the economic problem in this case : a. What is the economic problem in this case? Explain. b. What kinds of precaution could be taken by each party? That is, what is in the opportunity set?
Prepare a bank reconciliation for the el gato checking : Prepare a bank reconciliation for the El Gato checking account at December 31, 2021. Prepare any necessary adjusting journal entries indicated.
Describe why one might want to rethink traditional supply : Describe why one might want to rethink the traditional supply and demand models that help us understand why unemployment exists and how it might be reduced.
Denise purchased mutual fund a and fred purchased : Denise purchased mutual fund A and Fred purchased mutual fund B. Fund A has a higher expected return and higher risk as compared to fund B.
Which elements of president trump agenda : Which elements of President Trump's agenda might lead to a reduced underground economy? Which elements might cause an expansion of it? Why?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd