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The Townsville City Council is considering a proposal by the mayor to construct a recreational facility at a cost of $1.0 million. The facility is expected to have a useful life of 30 years during which operating costs are expected to average $100,000 per year. It is anticipated that one-time renovations costing $500,000 will be carried out after 18 years. Overall benefits to the community are expected to average $220,000 per year. The facility will have no salvage value. Assuming an interest rate of 5% per year, determine the benefit-cost ratio for the proposed facility. Should the Council approve the proposal?
Discuss why will voluntary actions, undertaken at individual level, be unlikely to bring about significant decrease in greenhouse gases such as CO(2)?
Draw a standard supply and demand diagram which shows the demand for new housing units that are purchased each month, and the supply of new units built and put on the market each month.
Find the best response functions
You borrowed $20,000 to finance the education expenses for your senior year of college at the beginning of your senior year. The loan will be paid off over five years and the first instalment will be due a year later. The loan carriers and interest r..
what is an externality? provide at least three examples. how does one of the examples you provided affect the market
Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue. Think of the graphic that showed the possibility of declining..
Consider the problem of a competitive firm and what is the maximum market price at which the firm decides to supply zero?
Describe the policy and the rationale being used to advance that policy. Explain the effect(s) of the proposed policy. Identify an example of an alternative or option that is (or could be considered).
Describe the impact of the recent economic crisis in the U.S. on the automobile industry, with special reference to the operating costs and auto sales in the industry.
Explain the cause of wage differentials using the compensated wage theory, be brief (5 pts). Explain the cause of wage differentials using the human capital theory, be brief (10 pts). Explain the cause of wage differentials using the migration theory..
uppose that some firms in a competitive industry are earning zero economic profits, while others are experiencing losses. In the long run, we would expect the number of firms in the industry to.
Describe the effect of increase from 1998-1999. How would the increase in demand affect the price? How would the price effect depend upon the price elasticity of supply? Please describe how. (Explain the illustration instead of actually drawing it)
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