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A state highway department is trying to decide whether it should “hot-patch” a short section of an existing county road or resurface it. If the hot-patch method is used, approximately 300 cubic meters of material would be required at a cost of $700 per cubic meter. Additionally, the shoulders will have to be improved at the same time at a cost of $24,000. These improvements will last 2 years, at which time they will have to be redone. The annual cost of routine maintenance on the patched up road would be $5000. Alternatively, the state can resurface the road at a cost of $850,000. This surface will last 10 years if the road is maintained at a cost of $2000 per year beginning 3 years from now. No matter which alternative is selected, the road will be completely rebuilt in 10 years. At an interest rate of 8% per year, which alternative should the state select on the basis of an annual worth analysis?
Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry.
Assume two economies that have identical production possibilities frontiers. Show how they can still gain from trade if their populations have different tastes. (Graph 2 different sets of indifferent curves to represent the different tastes, then det..
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..
In 2012, WVU president James Clements’ base salary was $775,000. The head football coach, Dana Holgorsen’s base salary was approximately $2.4 million. Why is the football coach paid so much more than the president? Should the head football coach be p..
After a long period of negotiations, it would appear that the United States and Iran have come to an agreement on the timing and scope of Iran's development of nuclear weapons. Mention and discuss in detail two reasons why the government of Israel th..
Explain why such an amendment, if strictly enforced, would force the government to enact a contractionary fiscal policy whenever the economy experienced a severe recession.
In a perfectly competitive industry, the price of good A is $2. If a firm in this inudustry decides to increase its price to $2.50, it will:
Illustrate what is the most effective process of decreasing the quantity of drugs consumed and decreasing the amount of drug-related crime.
The Immediate lyric Division accused Microsoft of forcing consumers to buy Internet Explorer whenever they bought Windows
What amendment to the Constitution includes BOTH the Equal Protection Clause and the Due Process Clause?
If the price of 35 inch HDTVs declines by 20% and the total revenue from the sale of 35 inch HDTVs rises, what can you say about the price elasticity of demand for 35 inch HDTVs? Will this price reduction necessarily lead to an increase in profits fo..
What is the cost of regular unleaded fuel in your town? What are some contributing demand and supply factors to the differences in fuel prices around the country? Think of an externality in your community. Explain what type of externality it is. How ..
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