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A DOT is performing a benefit-cost analysis of a new highway using an analysis period of 40 years as part the required environmental impact assessment of the project. The section of highway is estimated to have a construction cost $260 million dollars. The public benefit in reduced travel time and economic development around the highway is estimated to be $17 million per year for the first 5 years, then decrease by 3% per year for the remainder of the 40 year analysis period as congestion grows and economic development slows. The public disbenefit is estimated to be $1.3 million dollars in year 0 due to additional congestion and pollution during construction and then average $170,000 per year over the 40-year project life in environmental costs due to increased runoff and vehicle emissions. Using an interest rate of 4%, determine the benefit-cost ratio for this project using public/government version of the B/C ratio. Express your answer to two decimal places. Please show the correct steps for this question
q1. suppose that there are two products soda along with clothing. both brazil and the united states produce each
Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income.
Cooke Collectibles produces fine porcelain miniatures representing famous people and historical events. To avoid production and scheduling problems, Cooke's policy is to make all copies of a figure in one production run.
A tax imposed on the supplier of Blu Ray players shifts
The government has decided to reduce the pollution also from now on will require a pollution permit for each ton of pollution emitted.
Consider again the case analyzed in class with two sectors exhibiting constant returns to scale technology (sector A is capital intensive and sector T is labor intensive). Suppose there is a neutral technological change in sector T only (no technolog..
Economic profit is defined as the difference between total revenue and ________________. Explicit cost total economic cost implicit cost shareholder wealth
Suppose you have a perfectly elastic supply curve represented by P=5, and a demand curve represented by the equation P = 20 - Q . Draw a supply-and-demand diagram representing this situation, and find the equilibrium price and quantity.
Reserve requirement for banks is set at 5%. Your firm withdraws $42,000 on its line of credit at the Security Bank to purchase equipment for expansion. The equipment vendor deposits the amount that he receives from you at his bank, By how much has ea..
A firm has fixed cost of 2,000.Its short-run production function is y+4X and one-half, where x is the amount of variable factor it uses. The price of the variable factor is $3,000 per unit. Illustrate where y is the amount of output the short-run..
How is it possible for some people to pay negative taxes? Why is it important to distinguish between deficits and debt? Why may a budget surplus be considered undesirable?
Assume that a Pfizer has a linear demand curve for Lipitor, a constant marginal cost curve (i.e. the marginal cost is a constant), and is a monopolist in this market.
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