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El Paso Water Utilities (EPWU) purchases surface water for treatment and distribution to EPWU customers from El Paso County Water Improvement District during the irrigation season. A new contract between the two entities resulted in a reduction in future price increases in the cost of the water from 8% per year to 4% per year for the next 20 years. If the cost of water next year (which is year 1 of the new contract) will be $260 per acre-foot, what is the present worth of the savings (in $/acre-ft) to the utility between the old and the new contracts? Let the interest rate equal 10% per year.
For a perfectly competitive firm, the price of its product is $3.50. If an additional unit of a resource yields a value of the marginal product (or MRP) equal to $24.50, what is the value of the marginal-physical product? A firm's objective in busine..
q1. from the price elasticity calculated above we can say that if the price of x increases by 10 then its demand will
Using your knowledge of the biological dynamics of a fish population, develop a thorough and well-organized essay explaining the relationship between the biological growth of a stock of fish, the optimal economic outcome, and the challenge of attaini..
“But in real-life America, and especially in the America of railroad men and new industrialists, laissez-faire was a dangerous idea” Explain. The giant modern corporation did more than transform business into finance. It displaced classical ideas abo..
Suppose that the government increases spending from G to G1 while simultaneously raising taxes in such a way that, at the initial level of output, the budget remains balanced. Show the effect of this change on the aggregate demand schedule. How does ..
Converse alternatives to GDP as a measure of economic benefits in a current economy.
Assume a perfectly competitive firm is producing a level of output at which MR
Consider two communities. In one community, ten families have incomes of $100,000 each and ten families have incomes of $20,000 each. In the other community, ten families have incomes of $200,000 each and ten families have incomes of $22,000 each. Wh..
q.in the united states private schools charge tuition and compete against private schools that do not. one policy
q.q1. consider two persons ann and bill and two-goodsx and y exchange economy. the total endowment of the economy is
Suppose that a single firm monopolizes the market for coffee imports from Colombia into the United States. Supposed the firm is called Juan Perez. Juan Perez has production costs characterized by constant returns to scale such that AC=MC=40. Calculat..
Statistics show that vacancy rates average 20 percent on any given night." Assuming his statistics are correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variety externalities.
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