Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 3.4CE
To determine
The reason behind pursuing a tidal power alternative for just 15,000 households and the step function of variable cost for incremental power with the help of given figure.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The Virginia PUC is considering a subsidy program to encourage consumers to install improved
insulation in walls and ceilings of homes as a way of reducing the need for building a new
CCGT plant. The insulation program would cost $1,500,000 and would save 10MWH of power.
What is the negawatt cost in MWh of this power savings?
Enter your answer here
The following figure shows the incremental cost of two units and the marginal cost (old)
of the system, when all constraints are met. If both units were dispatched at their
minimum values, what would be the marginal cost of the new system (new)?
Select one:
a
The incremental cost of unit 1
Ob. Approximately 46.3 $/MWh
S/MWh
49
48
C1=45+0.02Pg1
47
46
45
44
C2=43+0.006Pg2
I
C.
The incremental cost of unit 2
0
100
200
300
400
500-
600
MW
A manufacturing firm maintains one assembly line to produce signal generators. Weekly demand for the generators is 35 units, and the line operates for 7 h/d, 5 d/wk. What is the maximum production time per unit required of the line in order to meet demand?
Chapter 17 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Knowledge Booster
Similar questions
- Has the natural gas revolution in the United States made coal-fired power plants more or less profitable? Why or why not?arrow_forward1. If the initial purchase and installation price for a Point-of-Use system for a small community of 40 connections cost $250,000 in 2017, what is your estimate for the cost of a point-of-use system for a small community system of 25 connections in 2021 dollars? List your assumptions. Consider using a PPI to update the cost values.arrow_forward= 2. The cost of operating a jet-powered commercial (passenger- carrying) airplane varies as the three-halves (3/2) power of its velocity; specifically, Co kny3/2, where n is the trip length in miles, k is a constant of proportionality, and vis velocity in miles per hour. It is known that at 400 miles per hour, the average cost of operation is $300 per mile. The company that owns the aircraft wants to minimize the cost of operation, but that cost must be balanced against the cost of the passengers' time (CC), which has been set at $300,000 per hour. At what velocity should the trip be planned to minimize the total cost, which is the sum of the cost of operating the airplane and the cost of passengers' time?arrow_forward
- Electricity is produced with water according to the function: E = 5 + 5W-1W² where E = kilowatt-hour and W = gallons of water. Water costs $0.02 per gallon. Electricity can be sold on the grid for $0.10 per kWh (kilowatt-hour). How much water should be purchased?arrow_forward%3D A manufacturer has determined the marginal-cost function dc/dq below, where q is the number of units produced. If marginal cost is $70.00 when q = 50 and fixed costs are $5000, what is the average cost of producing 500 units? dc = 0.012q - 0.4q + 60 dq The average cost of producing 500 units is $arrow_forwardA large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price=160−0.02×Demand for an annual printing of this particular product. The fixed costs per year (i.e., per printing)=$47,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 4,000 units per year. The maximum profit that can be achieved is $? (Round to the nearest dollar.) The unit price at the point of optimal demand is $? per unit. arrow_forward
- Given problem: The ore of a gold mine in the Mountain Province contains, on average, 0.5 grams of gold per ton. One method of processing costs $1,650 per ton and recovers 93% of the gold, while another method costs only $1,500 per ton and recovers 81% of the gold. If gold can be sold at $8,500 per gram, which method is better, and by how much? Consider the income and cost per ton of ore. Solve for the net receipt of each method. *Round off answer in 2 decimal places. Thank youarrow_forwardA New York renewable energy company pays $0.18 per kilowatthour (kWh) for the first 10,000 units of electricity each month and $0.15/kWh for all remaining units. If a firm uses 25,000 kWh/month, what is its average and marginal cost?arrow_forwardBoth coal and wind energy are used in Minnesota to generate electricity for household use. The two processes have radically different cost structures. Specifically let Qool = -10 + P where Qoo is the quantity of kilowatt hours supplied by coalfired plants, and P is the price per kilowatt hour, and let Qwind =-200 +2P where Qwind IS the quantity kilowatt hours supplied by wind turbines, and Pis the price per kilowatt hour. Let demand for electricity in Minnesota, measured in kilowatt hours, be given by the equation: Qwh= 410- P. Finally, let the marginal damages (MD) imposed on the environment as a result of electricity production by coal-fired plants be equal to: MD = 0.60 Qcoal where, as before, Qcoais the quantity of kilowatt hours supplied by coalfired plants. What happens to the amount of wind energy produced and consumed in Minnesota if coal-fired plants were forced to pay for the damages they impose on the environment? a. Wind energy production and use decreases. Ob. Wind energy…arrow_forward
- Complete all of the following definitionsarrow_forwardA company produces and sells a consumer product and is ableto control the demand by varying the selling price. The approximate relationship between price and demand is p = 38+ (2,700/D) - (5000/D²) for D>1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units that should be produced and sold each month to maximize profit? A 71 B 60 с 50 D 25arrow_forwardGiven: TC = 3,000 + 100Q TC = 3000 + 100Q ATC = Q = 10 AC = TC / Q TC = 3000 + 100*10 = 4000 ATC = 4000/10 = 400 MC = ∆TC / ∆Q = 100 How do you figure the Fixed Cost with Fomula?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning