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The provincial Department of Transportation pays Happy Ferry Company to transport cars across a bay that effectively splits the largest city in the province. Happy Ferry Company has submitted a bid of $5 million per year (to be paid to them by the province) for 15 years to provide the service since their current contract will run out shortly. The benefit associated with the ferry in time savings, gasoline consumption, etc., is estimated at $3 per car. A low-level bridge can be constructed that will increase the user benefits to $4.50 per car, mainly due to the reduced time needed to cross the bay. The low-level bridge will have a first cost of $30 million and annual maintenance charges of $1.8 million. A second bridge design will cost $37 million to implement with $2.5 million annual maintenance costs. The user benefits are estimated at $5.60 per car with the second bridge design. Assuming no other costs or salvage values, and given a 15-year bridge life, use an 8 percent interest rate and the assumption that 2 million cars per year will use either a ferry or a bridge in determining which alternative to recommend.
Find ticket price that maximizes revenue. Find profit-maximizing expenditure on players and profit-maximizing fraction of games to win.
A new Fed governor argues during FOMC meetings that the Fed has not sufficiently achieved the goal of helping the economy reach its potential level of output. She asks the committee to be more aggressive, using expansionary monetary policy to increas..
How large is the money multiplier when the required reserves ratio is 0.10? If the required reserves ratio increases to 0.125, what happens to the money multiplier?
q.use the following table to answer questions a-c.output q0 1 2 3 4 5 6total costtc36 45 52 61 74 91 110a. what is the
What features of the product cycle theory are at variance with the assumptions of the Heckscher-Ohlin model? How might the imitation lag hypothesis be incorporated into the product cycle theory?
Which of the following statements is true about market power?
Explain how the United States calculates unemployment and why many economist do not find this as a real economic indicator. How is unemployment calculated in other countries? Give two examples. What are your thoughts and ideas on this?
Bulls Eye department store specializes in the sales of discounted clothing, shoes, household items, etc. similar to the offerings at a regular Walmart or Target. Bulls Eye is the only department store in Show Low and the nearest other discount retail..
Assume that there are two identical firms in an industry, each producing the same good at the same constant marginal cost of $60. Make a table, similar to the one we made in class, for the Bertrand, Cournot and Monopoly models, showing the following:..
Which of the following methods of stimulation the economy provides the federal government with the greatest control over how the stimulation takes place? – decrease in interest rates, a decrease in income tax rates, an increase in investment incentiv..
Suppose in Fiscalville there is a 0 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 30 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 45 percent. ..
Two different brands of milk are randomly samples, and the fat content in each bottle of mild is determined. Twenty six bottles of Brand A yielded an average fat content of 26 grams with a standard deviation of 5 grams, and 31 bottles of Brand B yiel..
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