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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?
Graph the following indifference curves for the given utility levels: U (x,y)= min {3y,x} for U= 3, 6, 9, 12, and 15 (what kind of relationship exists between these good? Substitutes, complements?
The three families are considering putting in streetlights on Main Street and are trying to describe how many lights to install. The table below shows each family's willingness to pay for each streetlight.
q1. since the gdp is a total market value of final goods and services produced within a country over time. why is this
Eggebeen et al. (2010) found that men who at some point in their lives as fathers are more likely to have altruistic social relationships and be involved in community service organizations. The result was reported in the popular press (Jacobs 2009) a..
Donald is a stamp collector. The only things other than stamps that Donald consumes are Harold’s doughnuts. It turns out that Donald’s preferences are quasilinear, represented by the utility function U(d, s) = ln d + s, where d is the number of dough..
If Projects B and G are mutually exclusive, explain how would that affect your overall answers. That is, which projects would you accept in spending the $80,000.
An increase in the number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
Elucidate how you would address each of the main problems in the organization.
How can having panel data (with T=2 and n sufficiently large) help solve the omitted variables problem if the omitted variables are time invariant (don’t vary over time)?
Two firms, A and B, compete à la Bertrand when selling a homogeneous good whose demand equals P = 400 − Q. Each firm’s constant marginal and average cost of producing the good equals 60. What is the equilibrium without a patent system? Is the patent ..
The following figure plots the average farm prices of potatoes in the United States for the years 1989 to 1998 versus the annual per capita consumption. Each point represents the price and quantity data for a given year. Explain whether simply drawin..
You and your roommate are in a tough position. Both of you value a clean apartment at 100, and a dirty apartment at 30. The total cost of cleaning the apartment is 80. Layout this situation as a simultaneous move game. What is the equilibrium?
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