Question 1californian almond orchands are using

Assignment Help Microeconomics
Reference no: EM13348029

Question 1:

Californian almond orchands are using approximately one million bee hives each spring to pollinate the almond trees. The U.S. demand for Californian almonds is described by p = 100 - 2q and the entire production is consumed domestically. The supply function of Californian almonds is characterized by p = 10 + q. However, in the recent years the problem of colony collapse disorder (CCD) has significantly increase the pollination cost. As a result the supply function of Californian almonds is now described by p = 20 + 3q.

(a) Find what is the total willingness to pay in order to cure CCD.

(b) A pharmaceutical company has developed a drug that, when sprayed over the bee hives,guarantees 100% that CCD will not appear. The cost of spraying one million bee hives is $600. Assuming the cost is to be paid now, while the benefits in the Californian almondsmarket from curing CCD will accrue after two years, should the U.S. government by thisdrug? Assume that r = 8%.

Question 2:

Assume that the society is trying to allocate 300 units of a depletable resource across twotime periods. The inverse demands for this resource over the two periods are given byP0= 160 - 0.5q0and P1= 170 -0.5q1. The marginal extraction cost for the resource isconstant over an entire period but it decreases between periods. More specifically, MC0= 20and MC1= 10. The discount rate is r = 0.5 (i.e., 50%).

(a) What are the efficient quantities for each of the two periods? What are the correspondingprices and MUCs?

(b) How will your answers in part (a) change if the available stock of this resource increasesto 800 units?

Reference no: EM13348029

Questions Cloud

In this lab we will use the uart0 peripheral to communicate : in this lab we will use the uart0 peripheral to communicate with a pc using the rs232c serial protocol. we will
You have just graduated and one of your favorite courses : you have just graduated and one of your favorite courses was financial management.nbsp while you were in school your
Assume that you are the assistant to the cfo of xyz : assume that you are the assistant to the cfo of xyz company.nbsp your task is to estimate xyzs wacc using the following
John and jane doe are senior vice presidents of insurance : john and jane doe are senior vice presidents of insurance mutual of tampa. they co-manage the equity investments for
Question 1californian almond orchands are using : question 1californian almond orchands are using approximately one million bee hives each spring to pollinate the almond
Question 1 which type of study design is each of the : question 1 which type of study design is each of the following briefly describe why?i the smoking histories of patients
Interface binary io devices to the microcontroller we will : interface binary io devices to the microcontroller. we will continue using functions to encapsulate the low level
Problem 1pre-contribution balance sheets and fair : problem 1pre-contribution balance sheets and fair valuesjune 30 20x9in thousands of
If you were in charge of implementing a quality strategy : if you were in charge of implementing a quality strategy and benchmark your efforts with the competition how would do

Reviews

Write a Review

Microeconomics Questions & Answers

  Fundamentals of demand and supply

A. In 1996, many cows in Great Britain came down with "mad cow disease". As a result, the nations of European union banned the import of British beef.

  Explain the important characteristic in perfect competion

Explain the most important characteristic in perfect competition, monopolistic competition, oligopoly, and monopolies and relate the characteristic to how these firms can make profits in the short run. In your analysis, make sure to relate an exa..

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  What is the total consumer surplus now

When the price fell from $29 to $19, how much did each consumer’s individual consumer surplus change? How does total consumer surplus change?

  Explain the median housing price in a community

Explain the median housing price in a community

  Citizen gas company case study

Please refer to Citizen Gas Company PDF for case study and questions. The case study belongs to Economics. Citizen Gas Company is a medium sized company with customers from residential, commercial and industrial sectors.

  Determine which good lakshani should spend more on

For each of the following situations, decide whether the bundle Lakshani is thinking about consuming is optimal or not. If it is not optimal, how could Lakshani improve her overall level of utility

  Solve the partial derivative

Solve the partial derivative

  How the egg breaking rampage affects egg prices

Would you consider the demand for eggs to be elastic or inelastic and illustrate and explain with a diagram how can the Government intervene and correct this situation

  Are people helped more if production results in a loss than

Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?

  Question 1 evaluate the mu of x nbspin the following

question 1 evaluate the mu of x nbspin the following utility functions at x10nbspquestion 2.suppose you obtain utility

  The quantity supplied and p is the price per lot of paper.

Qd=160,000-2000P Qs = 40,000+2000P MEC=.0006Qs. Qd is the quantity lots of paper Qs is the quantity supplied and P is the price per lot of paper.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd