Reference no: EM131222239
Assignment: Externalities
• 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.
o 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.
o What is the per-unit amount of the externality?
o 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.
o What is the per-unit amount of both externalities?
o Discuss both government and private solutions that would result in an efficient outcome.
• Format your paper using West Writing Style Handbook guidelines.
• Include a minimum of two sources, which may consist of readings from the University Library, your text, and other selections.
|
Calculate the value of a call option on the stock
: Calculate the value of a call option on the stock in the previous problem with an exercise price of 110. Verify that the put-call parity theorem is satisfied.
|
|
Which of the following is not an element in check fraud
: Investigative reports are read by many people and used for many purposes. Which of the following is not an example of how a report would typically be used?
|
|
Develop a contingency plan for an area of non-performance
: BSBMGT517 MANAGE OPERATIONAL PLAN ASSIGNMENT. Develop key performance indicators (KPIs) to measure organisational performance of your operational plan. Develop a contingency plan for an area of non-performance. Include an action plan for its implemen..
|
|
Compute the net present value and internal rate of return
: "Do we have everything we need on sales and costs?"- Compute the net present value (NPV) and internal rate of return (IRR) of the Apix expansion project."
|
|
Explain what is the per-unit amount of the externality
: What is the per-unit amount of the externality? What is the per-unit amount of both externalities? Discuss both government and private solutions that would result in an efficient outcome.
|
|
How these tools support decision-making
: Investigate whether your organization, college, or university uses data mining technologies. If found, describe the type of data mining tools used and discuss how these tools support decision-making by providing examples.
|
|
Identification of three to five macroeconomic indices
: Identification of three to five macroeconomic indices. Definition and explanation of the indices, e.g., GDP, CPI, and other economic calculations.
|
|
The evolution of database technology
: Is it a simple transformation or application of technology developed from databases, statistics, machine learning, and pattern recognition?
|
|
Prepare hundred words summary for the discussion
: Prepare 100 words summary for class discussion. Joseph Schumpeter coined the seemingly paradoxical term "creative destruction," and generations of economists have adopted it as a shorthand description of the free market's messy way of delivering p..
|