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Assignment:
1. The US Department of Agriculture (USDA) established the Conservation Reserve Program to pay a yearly rental payment in exchange for farmers removing environmentally sensitive land from agricultural production. Economists in the USDA measured the total benefits of keeping the land in each farm idle as 6200L - 5 L3 where L is the acres of idle land in each farm. The total cost of funding the program per farm is 200L.
a. The WSDA is thinking of funding either 5, 15, 30 or 40 acres of idle land per farm. Calculate the net benefits of each acreage option. Among the four options, how many acres would WSDA fund?
b. Given your answer in (a), is this the acreage of land converted that maximize net benefits? Prove your answer.
c. Given your results in (a) and (b), what is a limitation of the benefit cost analysis tool?
After the last lease payment, you may buy the car for $20,000. If you plan to keep the car until it falls apart (at least a decade) and the interest rate is 10%, which approach has a lower present value of costs?
a farmer buys a new tractor for $146,000 and assumes that it will have a trade-in value of $92,000 after 10 years. the farmer uses a constant rate of depreciation to determine the annual value of the tractor.
Write a program to compute the autarky solution, and use it to reproduce Hopenhayn and Nicolini's calibration of r, as described in text.
Tom can produce 40 balls per hour or 4 bats per hour. Tessa can produce 80 balls per hour or 4 bats per hour. a. calculate Tom's opportunity cost of producing a ball. b. calculate Tessa's opportunity cost of producing a ball.
The Klein Corporation's marketing department, using regression analysis, estimates the firm's demand function, the result being Q = -104 - 2.1P + 3.2I + 1.5A + 1.6Z R2 = 0.89 Sample = 200 observations where Q is the quantity demanded, P is the price,..
You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P = 250 - 40Q, and your cost function is C(Q) = 10Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $
The flexural rigidities of both cantilevers are EI. If the entice structure undergoes an additional temperature change of 2 ΔT, find the deflection of the free end of the upper beam.
What sorts of factors affect how long, in real time, it might take for the "long-run" situation to occur?
Abby consumes only apples. In year 1, red apples cost $1 each, green apples cost $2 each, and Abby buys 10 red apples. In year 2, red apples cost $2, green apples cost $1, and Abby buys 10 green apples a. Compute a consumer price index for apples ..
Several years ago the Pettijohn Company sold a $1,000 par value, non callable bond that now has 15 years to maturity and a 7.00% annual coupon that is paid semiannually. The bond currently sells for $925, and the company's tax rate is 40%. What is..
Ralph usually buys one pizza and two colas from the local pizzeria. The pizzeria announces a special: All pizzas after the first one are half-price. Show the original and new budget constraint. What can you say about the bundle Ralph will choose w..
1. short answera. agree or disagree and justify your answer if the distribution of u in a population regression model
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