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In 2010, Brazil began construction of the Belo Monte hydroelectric dam on the Xingu River (which feeds the Amazon River). The project is funded by a consortium of investors and is expected to cost $11 billion. It will begin producing electricity in 2015. Even though the dam will provide clean energy for millions of people, environmentalists are sharply opposed. They say it will devastate wildlife and the livelihoods of 40,000 people who live in the area to be fl ooded. Assume that the funding will occur evenly over the 5-year period from 2010 through 2014 at $2.2 billion per year. The disbenefi ts are estimated to be $100,000 for each displaced person and $1 billion for wildlife destruction. Assume that the disbenefi ts will occur evenly through the 5-year construction period and anticipated benefi ts will begin at the end of 2015 and continue indefi nitely. Use an interest rate of 8% per year to determine what the equivalent annual benefi ts must be to ensure a B/C ratio of at least 1.0.
A monopolist has determined that marginal revenue is $2.00 and average cost is $1.75. It has also determined that the lowest sustainable average cost is $1.75. To maximize profit, should the firm lower its price, increase its price, or leave the p..
Suppose that yi receives $ 60 per day as interest on inheritance and her wage is $25 per hour, and she can work a maximum of 16 hours per day at her job. draw her daily budget constraint.
Possible goals of Not-For-Profit (NFP) enterprises include all of the following EXCEPT: maximize total costs maximize output, subject to a breakeven constraint maximize the happiness of the administrators of the NFP enterprise maximize the utility..
The economy is operating below its potential output, what kind of gap exists. Determine what kinds of fiscal or monetary policies might you use to close the gap.
If the Rhine Corporation ignores the possibility that other firms may enter its market, it should set a price of $10,000 for its product, which is a power tool.
Aims to provide association between what you learn from economic models and concepts in class with real-life events happening around you.
With the price floor at $0.17 per pound of cheese, producers sell 212.5 billion pounds of cheese (some to consumers and some to the USDA). How much producer surplus is created now?
Immigration is a major topic of concern in today’s economy. What are the possible problems and solutions for these concerns and what could happen to the U.S. labor markets if immigration is not controlled?
assume that the industry you wrote about in assignment 1 wants to expand and that its only option is a merger. now the
if companies in the automotive industry are considering a merger with another automotive company, what complexities would arise under this scenario of expansion of capital projects
Suppose Firm Y's production function is given by the following Cobb Douglas equation
Max Whitley, manager of Whitley Construction, builds new homes in a booming community in the Midwest. Although the sales have slowed down because of a national recession, it now looks as if the recession is about to end. Max wants to be ready with..
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