One standard method of determining just compensation is the comparable sales method. What is the comparable sales method, and why might some individuals perceive this method to be unfair?
What will be an ideal response?
The comparable sales method is a method of valuing land by determining what similar properties have sold for in the recent past. Some individuals might find this method to be unfair because the homes that have recently sold were most likely sold by people who wanted to move, and therefore may have valued their homes at less than what those who want to stay value their homes. Also, many homeowners have an emotional or sentimental attachment to their homes, and this is not accounted for by using a comparable sales method. Another reason that this method is perceived as unfair is that the fair market value standard does not compensate for any legal fees or relocation costs that may be incurred.
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Many individuals without health insurance receive "free" care. What are the sources of most of the care they receive?
a. Public hospitals and clinics. b. Private, not-for-profit hospitals. c. Private, for-profit hospitals. d. Multi-specialty physicians' practices. e. Solo practitioners and their associates.
Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information and the fact
that the firm receives $200 per computer, the marginal revenue product of the third worker is A) $4,200. B) $12,000. C) $10,000. D) $14,000.