Considering three undeveloped sites for water detention area

Assignment Help Business Economics
Reference no: EM131388883

For flood control purposes, the government is considering three undeveloped sites for a water detention area. The estimated costs associated with each alternative are given below. Use the conventional B-C ratio method, with AW as the equivalent-worth measure, to determine which alternative should be selected at an interest rate of 6 % per year. Assume the site will be used for 17 years before being developed for other purposes. [ Note AMM ]

Reference no: EM131388883

Questions Cloud

Money demand is highly insensitive to the interest rate : Assume that money demand is highly insensitive to the interest rate. Explain what the effects are on interest and income of an increase in government expenditure (G). Which component(s) of aggregate demand are crowded out (i.e., reduced)?
Find the firms expected profit : A competitive firm has the following cost function: The firm believes the market price for thier product will be $12 with probablility 0.57. Otherwise, they believe the market price for thiepr producet will be $15. Find the firms expected profit.
What happens to the price level-the nominal wage : For the Keynessians, as for the classicals, there is money neutrality in the long-term for the theory of aggregate supply. However the short-run is a different issue. What happens in the short run as the money supply increases? What happens to the pr..
Decide on new system of taxation : A government hires you to consult to help them decide on a new system of taxation. What criteria do you use when helping them decide what system to use? What criteria is the federal government best at meeting today? The worst?
Considering three undeveloped sites for water detention area : For flood control purposes, the government is considering three undeveloped sites for a water detention area. The estimated costs associated with each alternative are given below. Use the conventional B-C ratio method, with AW as the equivalent-worth..
Competitive firm and single price monopolist face : If a perfectly competitive firm and a single price monopolist face the same demand and cost curves then the competitive firm will produce a
Consider the oligopoly market with two firms : Consider the following Oligopoly market with two firms which produce a differentiated product and have the following demand functions. q1= 10 – P1 + (P2/2) q2 =10 – P2 + (P1/2) Total Fixed Costs to either firm is 10 dollars and there are no variable ..
Total change in spending as result of stimulus package : In order to financially stimulate the nation, the Federal government injected $800 billion dollars into the economy. However, the results were less than spectacular. One reason could have been a failure to understand the marginal propensity to consum..
Proponents of basic income argue : Proponents of a Basic Income (or Negative Income Tax) argue that it is a superior method of addressing income inequality than the Minimum Wage. discuss how, in a parallel universe with NO minimum wage but a Basic Income of approximately 2/3 of minimu..

Reviews

Write a Review

Business Economics Questions & Answers

  What is the smallest integer-valued annual compound interest

What is the smallest integer-valued annual compound interest that will result in an investment tripling in value in less than or equal to 15 years?

  What should the manufacturer do to stop losing money

In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. Why was the manufacturer losing money on this pro..

  Display something like hyperbolic discounting

Many people display something like hyperbolic discounting. Some businesses thrive on supporting this sort of short-term excess. For example, several establishments offer payday loans−short-term loans with ultrahigh interest rates designed to be paid ..

  Plotted on the vertical axis and q on the horizontal axis

Suppose a firm faces the following demand for its output q: q = a + bp, where p represents the price it receives per unit sold. Let α be the x-intercept of this demand curve (p plotted on the vertical axis and q on the horizontal axis). Let β be the ..

  How much output should the firm produce in the short run

Suppose that the manager of a firm operating in perfectly competitive market has estimated the firm’s average variable cost function to be AVC=4000-5Q+0.002Q 2 Total fixed cost is $62500. The firm across the street is charging $1000 per unit that the..

  Perfectly competitive firm operates in short-run with labor

A perfectly competitive firm operates in the short-run with labor as its only variable factor. At what weekly output is marginal cost equal to average variable cost? What is the minimum product price at which the firm will operate in the short-run? H..

  Illustrate the graph for a natural monopoly

Illustrate the graph for a natural monopoly. Where is price efficiency on the graph? Describe three consequences of price efficiency.

  What is the actuarially fair price of insurance in situation

Ms. Fogg is planning an around-the-world trip on which she plans to spend $10,000. Her utility from the trip is a function of how much she actually spends on it (Y), given by: uppose that people who buy insurance tend to become more careless with the..

  Find the equilibrium values of the real interest rate

Find the equilibrium values of the real interest rate, consumption, investment, and the price level.

  Who has comparative advantage in the production of shirts

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade. Who has the comparati..

  Variability of demand seem to have on buffer stock

Illustrate what is the annual cost for chocolate syrup buffer stocks. Illustrate what impact does the variability of demand seem to have on buffer stock.

  What is the incidence of the tax that falls on consumers

Suppose that the government decides to tax potato chip producers for every bag of chips sold. Before the tax, 100 million bags of potato chips were sold every year at a price of $3 per bag. What is the amount of the tax per bag of potato chips? What ..

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!

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