Authorized expansion of commuter trains

Assignment Help Business Management

Reference no: EM133743125

Question

A growing metropolis has authorized the expansion of commuter trains to a broader region around the city. The city government conducted a competitive bidding process and has awarded the contract for the new train lines to Acme train company. Acme's profits for this venture are represented by Π=72-2 , where represents the number of new train lines established. The new train lines will run adjacent to land owned by a developer, who plans to build new housing on the land. Consumers generally do not want to live adjacent to noisy train tracks, so the developer's profits are impacted by the train lines. The profits for the developer are Π=60-2- , where is the number of houses she builds. Another way to efficiently account for externalities is through side payments. Imagine that the developer could pay the train company to limit the number of trains it runs. Specifically, the developer will compensate the train company for exactly the profit it loses for each train it does not run. How many train lines will run? How many houses will be built? What are the total profits for the developer? $ What are the profits for the train company?

Reference no: EM133743125

Questions Cloud

Define the assigned theory of punishment : Define the assigned theory of punishment. Identify and describe an example of a movie, television show, or novel that depicts this theory of punishment.

Prepare a white paper for area like logistics or medicine : Prepare a White Paper for area like logistics or medicine or something similar to give it a detailed focus - write at least 1,500 words to make your case

Power to influence the behavior : The Specialty Metalworking Company management often sees project managers who are in a position of authority but do not have the power to influence the behavior

Multi-national organisation : You are a regional HR manager of a multi-national organisation that employees 620,000 people worldwide and 72,000 people in your region

Authorized expansion of commuter trains : A growing metropolis has authorized the expansion of commuter trains to a broader region around the city.

How both allied health providers can provide patient care : Describe the professional responsibilities of both allied health providers you selected and discuss their roles in delivering quality patient care

Diversity is relevant to training : Diversity is relevant to training because Group of answer choices applicant pools may be more diverse than in the past.

Examine your personal guiding principles and beliefs : Examine your personal guiding principles and beliefs. Which ones do you think have influenced your approach to leadership?

Reflect on your current health assessment skills : Reflect on your current health assessment skills and understanding of the importance of health assessment in client care.

User Account

All Pages