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Question: 1. Private Discounting
You are considering installing all new compact fluorescent light bulbs in your house. Your initial investment in the light bulbs will cost a total of $400 and you expect them to last 4 years. Atthe end of each of the four years, you will have saved $125 in electricity costs (assume thatyou pay your electricity bill only one time per year, at the end of the year). If you don't installthe bulbs, you would invest your money and expect to earn 5% per year. Show all your work forthe following questions.
a. Calculate the future value of the next best alternative (e.g. investing the money at 5%)
b. Should you buy and install the light bulbs? Why or why not?
2. Travel Cost Model
Suppose the town of Bandon on the Oregon Coast is applying for a permit to build an oceanoutfall. Ocean outfalls pipe partially treated sewage out to the ocean several miles where it isdischarged to be carried away by the currents. It is estimated that storms may occasionallyresult in shifts in ocean currents that transport the sewage back to the beach, prompting beachclosures for days after the storm passes. When this occurs, the beaches will be closed for use &no one is allowed to even walk on the beach. The Oregon Parks and Recreation Department(OPRD) hires you to estimate of the cost of closing beaches in Bandon for a day. You decide todo a travel-cost study to estimate this potential change in environmental quality.
a) Describe what information you would need to collect to do the study.
b) Graphically show how you would measure the cost of closing the beach.
Explain why the effective or true multiplier would be expected to be much smaller when the economy is near potential output.
Show that if q is a normal good for every consumer, the market demand for q will be negatively sloped with respect to its own price
Select any company of your choice and provide a short paper which details their strategy and what entry mode they use to gain access to foreign markets.
Calculate Jill's accounting profit - calculate Jill's economic profit and what makes economic profit different from accounting profit?
In what way (or ways) is the current Knowledge Revolution a child of the Industrial Revolution? Is this a new revolution or simply an extension of the 18th-century revolution? Given the history, is it perhaps more appropriate to call the current revo..
IBM CEO Report 2014. Over the past six years (since 2008), they have interviewed the major CEO's every two years to get a sense of their take on global markets. The report includes the Reponses of over 1,500 CEO's from over 50 countries. The l..
For this assignment, use the dataset eaef_as2.dta, which has 1200 observations, and is downloadable from SyD. The data contain information on wages and characteristics of workers in United States, in 2002. It includes a variable 'catgov' which indica..
Explain in words why an English auction is equivalent to a second-price, sealed-bid auction in terms of bidding strategies and explain in words why a Dutch auction is equivalent to a first-price, sealed bid auction in terms of bidding strategies.
Explanation and illustration of supply and demand theory, supported by academic references and an application of the theory to the issue of land-fill availability/volumes of waste.
ECON 2301- Economically, what the benefit to consumers of price increasing in hot weather? (Tip: imagine you and another person walked up to a machine and there was only one can left in it.)
A monopolist faces an inverse demand function p=100-4q and her total cost of production is c=20q. Determine the effect on equilibrium price of the introduction.
can the united states continue to run current account deficits indefinitely? since in the long term the obvious answer
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