Explain the reason behind the given issue

Assignment Help Microeconomics
Reference no: EM132125715

Question: Electric utilities in California often make exchanges of power with utilities in the Pacific Northwest because their time patterns of consumption differ. California peaks in summer to meet air conditioning loads, and the Northwest peaks in winter because many homes and businesses use electric heating. If Southern California Edison delivers 1,000 megawatts of power to Seattle City Light in winter, the contract may specify that Seattle will return, say, 1,050 megawatts next summer. Although no cash changes hands, this transaction includes interest. Explain why.

Reference no: EM132125715

Questions Cloud

What should day record as a lease liability : Annual rental payable at beginning of each year $60,000. At the beginning of the lease term, what should Day record as a lease liability
To what value do your funds grow in one year : You know in advance that the interest rate your funds can earn for the next year is 12 percent, and 6 percent for the year after that.
What is the fair value of the bulldozer : Sales commission of $35,000 will be incurred. After the improvements, the exit price was $450,000. What is the fair value of the bulldozer
What is the fair value of the liability explain : Sabado Entity holds an asset similar to the liability to be exchanged at a price of $45,000. What is the fair value of the liability? Explain
Explain the reason behind the given issue : Electric utilities in California often make exchanges of power with utilities in the Pacific Northwest because their time patterns of consumption differ.
What is the fair value of the leased building : The appropriate interest rate to reflect the time value of money is 8%. What is the fair value of the leased building
When the same efforts must be made to uncork bottles : Most restaurant customers tip according to a percentage rule-between 15 and 25 percent of the bill. Diners who have dinner and a $20 bottle of wine usually pay.
Review problem related to airlines : The directors of Ace Airlines have decided to incentivize their 1,000 employees by issuing every one of them 200 shares of stock.
Display the appropriate greeting for the users choice : SDEV 140 : Include the comment lines for Author, Date and Description. Display the menu presented in Exercise 1.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd