Marginal extraction-calculate present value of net benefits

Assignment Help Business Economics

Reference no: EM13860236

Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present value of the net benefits for the use of the resources. Show your work. Draw the graphs for both periods

Reference no: EM13860236

Questions Cloud

Evaluate the avoidable rate of canceled surgeries : Discuss the indications found in Table 15-1 and their effect on the health care organizations efficiency in elective surgery. Evaluate the avoidable rate of canceled surgeries and develop an implementation plan to overcome the concerns

Managers at all levels have to deal : Managers at all levels have to deal with conflict in the workplace. The extent to how well conflicts are resolved depends largely on how they are addressed. Carefully view the "Workplace Conflict...A True Story" video to determine the factors surro..

Examine the role that family plays in conceptual development : Examine the role that family plays in conceptual development

Calculate the amount of depreciation expense for each month : Calculate the amount of depreciation expense for each for the month ended February 28, 2014 assuming the company uses the double-declining-balance method for the computer and the straight line method for the office furniture.

Marginal extraction-calculate present value of net benefits : Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8-0.4q. Marginal extraction cost = $2. r = 10%. The available supply is 20 units. Suppose 13 units are consumed in period 1 and 7 units in period 2. Calculate the present v..

Find an equation that gives every bundle of cigarettes : Iggy only consumes two goods: coffee and cigarettes. Three cigarettes can be traded for one cup of coffee in a free market, or one cup coffee can be traded for three cigarettes. Iggy initially has 12 cigarettes and 5 cups of coffees. Find an equation..

Analyze the fundamental impact of it architecture : Analyze the fundamental impact of IT architecture or enterprise architecture on information management for your chosen company or industry. Determine if IT architecture impacts the effectiveness or efficiency of information management and vice ver..

Tariff result in favorable shift in the terms of trade : Explain why a nation that imposes tariffs on imported goods may find its welfare improving should the tariff result in a favorable shift in the terms of trade.

Calculate the effective rate of protection : Suppose that the production of $1 million worth of steel in Mexico requires $100,000 worth of taconite. Mexico's nominal tariff rates for importing these goods are 20 percent for steel and 10 percent for taconite. Given this information, calculate th..

User Account

All Pages