Reference no: EM13904757
Consider the following scenario: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the local economy and the surrounding community.
Write a paper of approximately 500 words that addresses the questions below.
You know that the water park will increase the traffic flow in the streets around the water park. There are both businesses and neighborhoods adjacent to the increased traffic flow. The cost to the community is estimated to be $6 per person. What kind of externality is this? Why?
Graphthe market for water park business, labeling the demand curve, the social-value curve, the market equilibrium level of output, and the efficient level of output.
What is the per-unit amount of the externality?
You know that the water park will have events in the evening. This will increase both foot traffic and street traffic at night. You believe this will improve the safety of the surrounding businesses, with an estimated benefit of $3 per water park attendee. What kind of externality is this? Why?
Create a new graph illustrating the market for water park business for these two externalities. Label the demand curve, the social-value curve, the market equilibrium level of output, and the efficient level of output.
What is the per-unit amount of both externalities?
Discuss both government and private solutions that would result in an efficient outcome.
|
Inflammation of the gums
: Bad gums may mean a bad heart. Researchers discovered that 85% of people who have suffered a heart attack had periodontal disease, an inflammation of the gums.
|
|
Analyze and evaluate interface design models
: Analyze and evaluate interface design models
|
|
One-factor ricardian model of two countries
: Present a one-factor Ricardian model of two countries, A and B, trading two goods, X and Y, and discuss the gains of trade generated in this model.
|
|
What is the firms current debt-equity ratio
: What is the firm's current debt/equity ratio? What is the firm's current weighted average cost of capital? What will the firm's cost of equity be after this additional borrowing?
|
|
Construction of a water park in town
: Consider the following scenario: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the local economy and the surrounding community.
|
|
Assumption of a normal error term in using the t test
: In a simple regression model (one X variable only), if the t statistic for the slope is 2.5, what is the value of F. State the null and alternative hypothesis for both tests. How important is the assumption of a normal error term in using the t te..
|
|
What does the scale read at that point
: The student lifts his feet from the floor, so that the scale reads his weight, 150 lb, when the car is horizontal. At one point during the ride, the car zooms with negligible friction down a straight slope inclined at 22.0° below the horizontal. W..
|
|
Define administrative expenses as either variable or fixed
: administrative expenses as either variable or fixed
|
|
Determining the favor of restricting trade
: Provide summarized but full discussion of the case in favor of restricting trade. Using a simple model, present the benefits of trade negotiations for countries in today's global economy.
|