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Suppose you are a regulator in charge of allocating water between residential and agricultural users (farmers) in Southern California. You conduct a survey that finds that under the current split the average residential water consumer would be willing to pay up to $0.70 a gallon for the next gallon of water they consume while the increased market value of crop production from the gallon of water (after farmers pay their costs) to the most profitable farmer would be $0.20. Is the current allocation of water economically efficient (circle: yes or no)? If not, in what direction should the water be reallocated? In a sentence or two explain how we would expect these two quantities to compare to each other if net benefits were maximized.
what are the types of economic analysis
1. Isoquants are negatively sloped because if the quantity of factor 1 used in production is decreased then the quantity of the other factor must be increased to produce the s
What is return on investment? Return on investment is the profit earned by investing in some business or some project, for instance investment in stock exchange. Profit earned
meaning of economics laws
the existance of a labor marketcharacterised by perfect competition is a fallacy.discuss
if nominal GDP in 2002 exceeds nominal GDP in 2001, did real output rise?
Jane receives utility from days spent travelling on vacation domestically(D) and days
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Answer the following question Focus on Real Estate Development Normal 0 false false false EN-IN X-NONE X-NONE
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