the unit will cost a seller. For any level of output above Q. a buyer values a unit of goods in this market Suppose now that a firm that produces for this market is able to emit particulate matter into the air surrounding its production facility, harming wildlife due to and negatively affecting the breathing of nearby residents. This is an example of

the unit will cost a seller. For any level of output above Q. a buyer values a unit of goods in this market Suppose now that a firm that produces for this market is able to emit particulate matter into the air surrounding its production facility, harming wildlife due to and negatively affecting the breathing of nearby residents. This is an example of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume you own a copper mine. The mine has total known reserves of 500 (million metric tons). The market demand for the copper is estimated to be: P = -1.75Q + 1000 and the marginal cost curve is estimated to be: P = 1.25Q + 100. What is the efficient quantity of copper to extract if you need only consider the current period in your decision making? Assume you need to consider allocation of the mine’s resources across two periods of time—the present and the future. Assume the “future” period is 10 years from the present and you use a discount rate 7.5%. What would be the efficient (inter-temporal) allocation of the mine’s resources in each period? What would be the price in each period if demand is constant across time?
a) How can a firm determine the best level of output and price for products that are jointly produced in fixed proportions?
Suppose that there are two fancy hotels on the online booking platform, say W hotel and Ritz Carlton hotel. Each hotel has the capacity of 20 rooms on the New Year Eve. There are 20 families who are planning to stay at Bay Areas. Suppose that you are the manager and you set the price to maximize the hotel profit. The marginal cost of each hotel room = 500 RMB The largest valuation on the hotel room = 2000 RMB valuation decrease by 100RMS. In total, there are 20 families. Discuss with your peers how many rooms you will offer in the market.
Suppose that the demand curve for tickets to see a football team is given by Q = 36,000 - 4p and marginal cost = 1000 per customer. (Ten dollars as this is expressed in pennies) This can also be written as D(P) = 9000 -0.25 Q. MR = 9000-0.5 Q Suppose there are only 45,000 seats in the stadium. We would like for you to solve for the PRICE (in dollars) that the PROFIT MAXIMIZING UNREGULATED MONOPOLIST would charge. $30 O $90 $60 $50 O $70
Discuss the optimal method for procuring a modest number of standardized inputs that are sold by many firms in the marketplace. What are the primary advantages and disadvantages of using this method to acquire inputs? Give an example not used in the textbook that uses this method of procurement.
say the managers of the dinner restaurant (previously mentioned) decided to implement the new strategy of targeting higher-income consumers. Suppose that the quality improvements associated with this strategy change will increase the variable costs for the average entrée from $2.50 to $4.50 and that the price change associated with this strategy will raise the price of the average entrée from $8.00 to $13.0O. If the base sales level for the restaurant is 400 entrées per week, then the breakeven level of entrée sales that the manager should be considering is: Select one: O a. 141 entrées per week O b. -200 entrées per week O c. -141 entrées per week O d. 200 entrées per week
am. 128.
Appalachian Coal Mining believes that it can increase labor productivity and, therefore, net revenue by reducing air pollution in its mines. It estimates that the marginal cost function for reducing pollution by installing additional capital equipment is MC = 40P where P represents a reduction of one unit of pollution in the mines. It also feels that for every unit of pollution reduction, the marginal increase in revenue (MR) is MR = 1,000 - 10P How much pollution reduction should Appalachian Coal Mining undertake?
Was it ethically acceptable for president regan to fire the striking air traffic controller?
Q (F) Suppose the inverse demand curve on ore is given by P = X - 0.67 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 6 q1. The marginal cost of obtaining ore through recycling is MC2 = 96 + 2 q2. What should be a maximum value of X so that recycling is NOT cost-effective?
1: Given that the value of time is $1.5 per minute, justify the proposal. 2: To what value of the construction cost would the proposal become justified?
Two coal-burning electric power plants are emitting mercury which impairs cognitive development in children. Plant A's marginal abatement cost is MCA= 1.2q and plant B's marginal abatement cost is MCB = 0.3q. Each firm initially emits 50 units and the EPA would like to reduce total emissions to 40. If the EPA follows a command-and-control policy and tells each firm to abate by the same amount, what will be the total costs? If firms could trade permits, what would happen to total costs? Why?