A large mountain area in Western Norway has very favorable wind conditions andopportunity to establish a wind farm for the production of electric powerwhich can be sold in the European power market. The company Power has previouslygained the exclusive right to develop the area for power production. Let x be the number ofdmøller set up in the area. The area is used by many people asrecreation area, and is close to a major city.Power's profit depends on how many wind turbines set up. Letthe profit be given byIP (X) = 100x - 5x 2Two groups are negatively affected by the wind turbine development, the local populationgen and the local tourism industry that sells adventure travel to foreign countriestourists. The value of the local population of the area given by the following function1V L (x) = V 0 - 30x -X 22The tourism industry's profit is given by the following functionπτ(x) πο- 10x-1X 2 c) The tourism industry contacts Power and asks them to reduce the number ofdmøller in their development plans. They sit down at negotiationsthe table. How many wind turbines will they agree to build (round off tonearest whole number)? Explain why such an agreement would have to involvethat the tourism industry pays Power to reduce the number of wind turbines. Whatis the smallest amount the tourism industry has to pay to get Poweron the agreement? What is the maximum amount the tourism industry can stretchto pay for the deal?d) Despite these negotiations between the tourism industry and Powermore the angry reader post from the citizens who think their voicenot heard. The municipality takes self-criticism and suggests that they go intothe same negotiations with Power. Explain why such an initiativewelcomed by both Power and the tourism industry. How will thischange the outcome of the negotiations, ie how many wind turbines will they agree onthat Power should build? What is the minimum amount the tourism industry andthe municipality as a whole must pay to get Power on the agreement? remember thatPower already has an agreement with the state that gives the company a full right toto build as many wind turbines as they want.

Wind turbine is a device that converts the wind's kinetic energy into electrical energy. There is…

A large mountain area in Western Norway has very favorable wind conditions and opportunity to establish a wind farm for the production of electric power which can be sold in the European power market. The company Power has previously gained the exclusive right to develop the area for power production. Let x be the number of dmøller set up in the area. The area is used by many people as recreation area, and is close to a major city. Power's profit depends on how many wind turbines set up. Let the profit be given by TIP (X) = 100x - 5x 2 Two groups are negatively affected by the wind turbine development, the local population gen and the local tourism industry that sells adventure travel to foreign countries tourists. The value of the local population of the area given by the following function 1 VL (x) = V 0 - 30x - 2 The tourism industry's profit is given by the following function пт (х) %3D по- 10х- 1 X 2

A large mountain area in Western Norway has very favorable wind conditions and opportunity to establish a wind farm for the production of electric power which can be sold in the European power market. The company Power has previously gained the exclusive right to develop the area for power production. Let x be the number of dmøller set up in the area. The area is used by many people as recreation area, and is close to a major city. Power's profit depends on how many wind turbines set up. Let the profit be given by TIP (X) = 100x - 5x 2 Two groups are negatively affected by the wind turbine development, the local population gen and the local tourism industry that sells adventure travel to foreign countries tourists. The value of the local population of the area given by the following function 1 VL (x) = V 0 - 30x - 2 The tourism industry's profit is given by the following function пт (х) %3D по- 10х- 1 X 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Creative Homework!Shorr Project Assume that you area marketing consultant for one of the clients in ilem14.16. You believe that the business would benefitfrom nontraditional marketing. Develop seve<al ideasfor social-media tactics that you feel would be successful for the client
>A Moving to another question will save this response. uestion 8 It is possible for companies to use some combination of push and pull strategy. True False Moving to another question will save this response. 10 #3 00 3. 10 5 4) %24
Tech is playing State in the last conference game of theseason. Tech is trailing State 21 to 14 with 7 seconds left inthe game, when they score a touchdown. Still trailing 21 to20, Tech can either go for two points and win or go for onepoint to send the game into overtime. The conferencechampionship will be determined by the outcome of thisgame. If Tech wins they will go to the Sugar Bowl, with apayoff of $9.2 million; if they lose they will go to the GatorBowl, with a payoff of $1.5 million. If Tech goes for twopoints there is a .30% chance they will be successful andwin (and a .70% chance they will fail and lose). If they gofor one point there is a 0.98 probability of success and a tieand a 0.02 probability of failure. If they tie they will playovertime, in which Tech believes they have only a 20%chance of winning because of fatigue.a. Use decision-tree analysis to determine if Tech shouldgo for one point or two points.b. What would Tech’s probability of winning the game inovertime…
Pre-mixed concrete is an important input for the construction industry. Concrete cannotbe stored or transported over long distances as it begins to set after only a few hours. Forthis reason, only the three local firms—Aggregate Inc., Big Industries and ConCorp—arein a position to compete in the market. Moreover, the capital and regulatory requirementsfor constructing a new concrete plant are substantial, creating an effective barrier to entry.Pre-mixed concrete is regarded as a homogeneous good by the construction industry.Inverse demand in the market has been estimated to be,P = 600 −Q/50,where P represents the price of a cubic metre of concrete in dollars, and Q is the totalnumber of cubic metres of concrete supplied into the market on a given day.At present the three firms appear have identical production costs, with each firm facingfixed costs of $400,000 per day and a marginal cost of $180 per cubic metre.Big Industries and ConCorp estimate that the proposed merger would reduce…
It costs $250 to produce an X-Box. We are trying todetermine the selling price for the X-Box. Prices between$200 and $400 are under consideration, with demand forprices of $200, $250, $350, and $400 given below. SupposeMSFT earns $10 in profit for each game that an X-Boxowner purchases. Determine the optimal price andassociated profit for the case in which an average X-Boxowner buys 10 games. Console Price ($) Demand200 2.00E06250 1.20E06350 6.00E05400 2.00E05Unit cost $250
2-8e What are the characteristics of a long butterfly spread: e. maxiumum profit
34. Which one would have the greatest effect
Two companies must collaborate to develop a new product. They must choose between two products, product A or product B. While Company ABC has a patent for product A, Company XYZ has a patent for product B. If a product gets developed, the company without a patent must pay licensing fees of $200K. The companies' profits (in $1000) are as follows: Table 2: Product Innovation ABC Product A Product B XYZ Product A Product B 300,100 0,0 1. What are the equilibria in pure strategies? 2. Which basic game does it resemble? 0,0 100,300
During your first month as an employee atGreenfield Industries (a large drill-bit manufacturer),you are asked to evaluate alternatives forproducing a newly designed drill bit on a turningmachine. Your boss’ memorandum to you haspractically no information about what the alternativesare and what criteria should be used. The same taskwas posed to a previous employee who could notfinish the analysis, but she has given you the followinginformation: An old turning machine valued at $350,000exists (in the warehouse) that can be modified for thenew drill bit. The in-house technicians have givenan estimate of $40,000 to modify this machine, andthey assure you that they will have the machine readybefore the projected start date (although they havenever done any modifications of this type). It is hopedthat the old turning machine will be able to meetproduction requirements at full capacity. An outsidecompany, McDonald Inc., made the machine sevenyears ago and can easily do the same…
365 ht, Library, and ng Resources soft Teams ngs soft Teams s "Marble Madness" is a local carnival game, costing $2. There are 100 total marbles in a bag: 2 red, 8 orange, 10 yellow, 30 green, 30 blue, and 20 black. If a red marble is pulled, you win $6, an orange marble wins $4, and a yellow marble wins $2. A green, blue, and black marble result in a loss of the $2 cost to play. What is the expected value of a marble pull? Provide your answer below
Assume that the competition between Boeing and Airbus can be characterized by the following mnatrix Aórbus Produce Qut] Produce -15/ – 5 90/0 Boeing Quit 0/140 0/0 where the first number in each cell denotes the payoff that Boeing receives and the second nunber is the payoff that Airbus receives. Assume that Boeing has a first mover advantage. Then a subsidy of 10 provided to Airbus by the European government will change nothing will increase European welfare will negatively affect European welfare result in both firms leaving the market
How is a patent obtained? Select one: O a. automatically O b. register a grant application with USPTO O c. by putting idea out to the public O d. by adding a "tm" to it