Reference no: EM131167333
Groundwater needs to be allocated between two periods, knowing that it will be totally used up in period two.
The marginal benefit from consuming water is
MB = 200 – 2Q
and is the same for both periods.
The marginal extraction cost (MEC) = 20 and is the same in both periods.
The total available water supply is 140 units, and the discount rate is 20%.
a. What is the equation for net marginal benefits (NMB) is year 1?
b. If, in year one, NMB = 0, how much water would be purchased? if the quantity = 0, how much is the NMB? if all 140 units of water are purchased, how much is NMB?
c. Graph this two-period extraction problem, remembering to “discount” the equation for NMB in year 2. Label your graph completely.
d. What is the optimal allocation of water between the two years? Show all of your work and label these amounts on your graph.
e. If the discount rate rises, what do you think will happen to your answers in part (d)? (you do not need to use actual numbers, but talk about what happens when discount rates rise)
Compute and interpret the evpi
: does Sharp Outfits minimize its expected total cost by choosing to postpone shipping its customer orders via UPS?- compute and interpret the EVPI when p = 0.15.
|
Arms merchant often sells weapons to both sides of conflict
: During the war, the same arms merchant often sells weapons to both sides of the conflict. In this situation, a different price could be offered to each side because there is no danger of resale. Suppose a US arms merchant has a monopoly of a special ..
|
What aspect of museum was expose in work of hans hans haacke
: Discuss Postmodernism. Provide examples. What aspect of the museum was exposed in the work of Hans Haacke? What is Neo-Expressionism? Explain your answer.
|
What do isolated and pendant vertices represent
: What does the degree of a vertex represent in an academic collaboration graph? What does the neighborhood of a vertex represent? What do isolated and pendant vertices represent?
|
What is the equation for net marginal benefits
: Groundwater needs to be allocated between two periods, knowing that it will be totally used up in period two. What is the equation for net marginal benefits (NMB) is year 1? What is the optimal allocation of water between the two years? Show all of y..
|
Prepare a proposal related to dammam city in saudi arabia
: Prepare a research proposal related to Dammam City in Saudi Arabia. My research focus on the relation between the urban sprawl, city growth and the effect of that on housing. So try to create the idea of that.
|
Non-homogeneous differential equations
: Second Order Linear Homogeneous and Non-homogeneous Differential Equations with Constant Coefficients with Applications
|
What do the in-degree and the out-degree of a vertex
: What do the in-degree and the out-degree of a vertex in a telephone call graph, as described in Example 4 of Section 10.1, represent? What does the degree of a vertex in the undirected version of this graph represent?
|
Which causes negative externality
: Consider two ways to protect your car from theft. The Club ( a steering wheel lock) makes it difficult for a car thief to take your car. Lojack (a tracking system) makes it easier for the police to catch the car theif who has stolen it. Which of the ..
|