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A wind power turbine produces a maximum electrical output of 500 kilowatts. The turbine has a 15-year lifetime and the discount rate is 10%. The wind turbine costs $1 million for equipment prior to installation. Operation and maintenance costs are $50,000 per year. The capacity factor depends on where the turbine is installed. The power producer is considering two possible sites. A nearby site has a capacity factor of 30%, and construction and installation would add $100,000 to the cost. A more distant site with a more favorable wind resource has a capacity factor of 38%, but construction costs are $250,000. Which site is better, if the goal is produce the cheapest electricity? A more expensive turbine would last for 20 years instead of 15 years and would give a capacity factors of 33% and 41% instead of 30% and 38%. The better turbine costs $1.5 million. Is it worth buying the more costly turbine?
Subjective definition of probability is:Select one:A. a weighted average of different peoples' degrees of certainty of an event's occurringB. a theoretical probability distributionC. a person's degree of certainty of an event's occurringD. an expecte..
Kermit and Fozzie play a game with two jars, each containing 100 pennies. The players take turns, Kermit goes first. Each time it is a player's turn, he chooses one of the jars and removes anywhere from 1 to 10 pennies from it. Does this game have a ..
What does the elasticity of demand for labor measure? List and describe the three determinants of this type of elasticity.
Bid-ask spreads: Suppose you contact your currency dealer at Credit Agricole and obtain the following quote on US dollars, priced in Swiss franc (SF).
You and your neighbor both enjoy live performances by Katy Perry. Your neighbor is quite well o? and has been hiring Katy Perry to perform in their apartment. Katy Perry charges $5,000 per hour to perform at someone’s home. Your neighbor’s demand for..
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4. Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last un..
A market (or industry) demand curve is described by Q = 600 – 0.5 P The monopolist firm’s cost function is TC = 7,550 + 16Q. Find the profit-maximizing quantity and price. If the monopoly is dissolved and then the market becomes perfectly competitive..
For the purpose of stabilizing the macro economy, which of the policies below are suitable for a situation when aggregate demand is excessive, or when there is a large -GDP gap?
q.in the united states private schools charge tuition and compete against private schools that do not. one policy
What do monopolistic competition, pure monopoly, and perfect competition have in common?
Do you feel that it is possible to develop a universal set of ethical standards for business, or do you believe that cultural differences make universal standards impractical and/or impossible?
Identify the exclusionary pricing practices and why and when they are prohibited by the Competition Act. What are the economics rationale and efficiency effect of these strategies?
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