Draw the demand curve of marginal benefit, Cost Accounting

The total demand (marginal benefit) curve for visiting Yosemite is as follows: Price = 5000-10*NumberOfTrips -10*TonsOfVisibleTrash.

a. Suppose the quantity of trash=100 tons. Draw the demand curve below, being sure to label the axes and the slope and intercept appropriately.

b. Does the quantity of trash increase or decrease the willingness to pay for an additional trip?

c. Suppose the park charges an entrance fee of $100. What is the total net benefit to consumers who visit the park (the "consumer surplus") if this is the only travel costs (all other costs of the trip are zero)? In answering this question, continue to assume that the quantity of trash remains 100 tons.

d. Now assume the park implements a cleanup program to reduce the trash in the park to 20 tons. Assuming the entrance fee from c) remains the same, what is the new consumer surplus? What was the economic benefit to park visitors from the cleanup program?

 

Posted Date: 3/30/2013 5:22:36 AM | Location : United States







Related Discussions:- Draw the demand curve of marginal benefit, Assignment Help, Ask Question on Draw the demand curve of marginal benefit, Get Answer, Expert's Help, Draw the demand curve of marginal benefit Discussions

Write discussion on Draw the demand curve of marginal benefit
Your posts are moderated
Related Questions
What depreciation method does Amazon use for property and equipment? What is the range of useful lives for buildings and for fixtures and equipment? Do these useful lives make sens

Find Out Overhead Application Rate The given is the budget of Superb Engineering Works for the 2002 year Factory overheads Kshs 62,000

Limitations of Budgeting 1. Too mush reliance may reason resistance or inflexibility to change. 2. Difficult to set levels of attainment. It may result into too tight budg

Outline of an ABC System An ABC costing system operates like given: Step 1 Find out an organization's major activities. Step 2 Find out the factors that identi

Material Handling The objective is to ensure about the goods are delivered to the right places at the right instance and in aright manner to ignore delays, unnecessary and con

I have a project for cost account and I need the solution for it

OBJECTIVES OF COST ACCOUNTING 1)To help in the development of long range plans by provided that cost data that acts as a origin for projecting data for planning. 2)To make s

Absorption Costing The process described in this section by that net overheads are absorbed into production naturally enough is identified as absorption costing.  The absorpti

Critical Thinking about Cost Flow It is simple to overlook an important aspect of cost flow within a manufacturing operation. If you see that have taken note of an important co

Conan O'Brien Logging and Lumber Company owns 3,300 acres of timberland on the north side of Mount Leno, which was purchased in 2000 at a cost of $650 per acre. In 2012, O'Brien be