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County is considering using a piece of park land for one of two alternative recreation projects. Project A would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years. (Assume the benefits are realized at the ends of years 1 through 10). Project B would require construction costs of $4 million and generate net benefits of $1 million per year for 20 years. (Assume the benefits are realized at the ends of years 1 through 20). If these figures are in real dollars, and the real discount rate is 7 percent, which project would the county select?
During World War 2 gasoline and other consumer goods were in short supply on the home front so that maximum resources could be diverted to the war effort. In order to cut back on the consumption of these many products, rationing coupons were issued t..
Find out statistics on the web from 2004 to present on following indicators of the macroeconomic conditions of the U.S. economy.
How would quantity demanded and the price of this product be measured? Explain the relationship between the individual consumers’ demand and the market demand
Bob and Dexter share a dorm room. Bob is a chain smoker but Dexter does not smoke. There are no laws that forbid smoking in the dorm rooms.
The US government has given legal status to some qualified illegal immigrants, white and blue color workers. What is the main economic reason for such a policy? Briefly explain and show it graphically (AD and AS).
In the context of share holder maximization model of a firm, what is the expected impact of each of the event on the value of the firm?
Which of the following auction examples has a common value information structure?
Consider an investor with preferences given by the utility function U = E(r) – 0.5Aσ2 and there are two portfolios with the following characteristics: Portfolio A Portfolio B E(r) = 0.06 E(r) = 0.10 σ = 0.07 σ = 0.17 (a) suppose that the investor has..
What if the monopolist charged P= $5.50 for the first 3 units of the commodity and P= $4 for the next 3 units What type of price discriminiation is this?
Consumers are not able to resell good 1. For p
Discuss equations for and graph the variable cost, average variable cost, and marginal cost of cleaning classrooms.
Suppose ABC were to use the caps as a promotion. How many caps could ABC give away free? At what price would no caps be sold? Calculate the price elasticity of demand at a price of $6?
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