Explain different levels of a hypothetic, Macroeconomics

Suppose that a public park is visited by people living in five concentric zones around the park. Each zone has a population of 5000, and the total travel cost for a visit to the park from zone i is given by TCi = 4 (i -1), where i = 1 , ... , 5. For each zone, the estimated relationship between visitation rate V (defined as annual number of visits/1000) and total travel cost (TC) is given by V = 100 - 5 TC.

(a) For each zone, obtain an equation relating the total number of visits from that zone to different levels of a hypothetical fee charged per visit.

(b) Write down in equation form (and also depict in a diagram) the aggregate demand curve for the park and use this curve to compute the annual user value of the park.

(c) Suppose that the annual maintenance cost of the park is 30,000 and the local government is under considerable pressure to sell the park to urban developers. What would you advise in this case ? Use the information obtained in 2(b) and list any additional factors that may need to be investigated before arriving at the correct decision.

 

Posted Date: 3/19/2013 6:00:19 AM | Location : United States







Related Discussions:- Explain different levels of a hypothetic, Assignment Help, Ask Question on Explain different levels of a hypothetic, Get Answer, Expert's Help, Explain different levels of a hypothetic Discussions

Write discussion on Explain different levels of a hypothetic
Your posts are moderated
Related Questions
Use the points on the graph below to answer the following questions. i)   What is Ep along D1 (from A to B)? ii)  What is the Ep along D2 (from X to Y)? iii) What are

Determine the term- Nominal wages The nominal wage is wage per unit of time in currency used in the country- what we mainly just call wage. When we refer to wage in macroeconom

derive equations for IS,LM and AD curves.

Foreign Direct Investment and Development: In neo-classical economic theory, FDI involves  the movement of capital from capital abundant  to capital scarce host countries. Mun

What are the potential disadvantages of growth? The potential disadvantages of growth are as follows: • Raised pollution, • Depletion of non renewable natural resources

In reference to the above question, assume you know the combination of inputs that minimizes cost. What would happen to this input combination if the price of labor increased? What

Which of the following is an important consideration in short run factor-proportions trade analysis? a. Comparative advantages only occur in theory. b. Specific factors are a


A sample of 2,000 licensed drivers revealed the following number of speeding violations. 0 violations for 1,910 drivers. 1 Violations for 46 drivers. 2 violations for 18 drivers. 3

What was Real GDP for 2009? What does GDP tell us? How did GDP change from 2008? What caused these changes? What was GNP for 2009? What is the difference between GDP and GNP?