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Question: Two routes are under consideration for a new interstate highway segment. The long route would be 25 kilometers and would have an initial cost of $21 million. The short transmountain route would span 10 kilometers and would have an initial cost of $45 million. Maintenance costs are estimated at $40,000 per year for the long route and $15,000 per year for the short route. Additionally, a major overhaul and resurfacing will be required every 10 years at a cost of 10% of the first cost of each route. Regardless of which route is selected, the volume of traffic is expected to be 400,000 vehicles per year. If the vehicle operating expense is assumed to be $0.35 per kilometer and the value of reduced travel time for the short route is estimated at $900,000 per year, determine which route should be selected, using a conventional B/C analysis. Assume an infinite life for each road, an interest rate of 6% per year, and that one of the roads will be built.
What would be the total potential gains from trade if the ski resort and the birders were able to negotiate and what are the total net benefits of the economically efficient number of ski resort acres
Do the exercises in the previous problem for an increase in government spending. Describe the effects of an unexpected devaluation on the central bank's balance sheet and on the balance of payments accounts.
1list the determinants of aggregate demand by component.list the determinants of short-run aggregate supply.3draw
What type of property ownership does the following describe? George and Martha each own an undivided interest in a house and surrounding land they call "Mount Vernon;" at George's death his interest passes automatically to Martha.
This week's lecture indicates that writers of the Realism period made a concerted effort to move away from themes depicting the extravagance of emotion and toward themes of industry, the rise of cities, the workplace, social convention, and the reali..
The VP of Manufacturing is concerned about the project's economic viability if the equipment life varies from the 10-year estimate, and the VP of Marketing is concerned about sen- sitivity to the revenue estimate if the annual decrease is larger o..
A market is initally served by a monopoly firm 'A' with demand given by Q=400-P, and marginal costs given by MC=100. Find the monopoly price and quantitty. Now, a new firm 'B' enters the market, and takes A's initial output as given. Find A's profit ..
What are the factors that can lead to a change in demand for labor (shifting of the labor demand curve?) Describe how labor demand would change in response to a change in each factor separately.
Given the information in (d), calculate the new equilibrium interest rate and the new equilibrium quantity of loanable funds
What is the difference between an explicit cost and implicit cost? What is the difference between normal profit and economic profit
An analysis of the statistical data/trends related to the populations. How did you use data to determine the three most vulnerable populations?
How can this relate to ones life in regards to economics and Purposeful Behavior
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