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The cost and benefits for a proposed dike flood control systemare as follows:Capital cost of dike= $1,040,000Capital cost of pumping station= $475,000Economic life of dike= 50 yearsEconomic life of pumping station= 25 yearsAnnual O&M= $20,000Benefits (average annual)= $215,000If i = 8%, determine the B/C ratio. Solve the problem on a present worth basis and the on anannualized basis.
An economy has full-employment output of Y%u0305 = 1850. Desired consumption and desired investment are: \(C^{d}= 500 + .5(Y-T)-100r\) \(I^{d}= 400 - 100r\) Government purchases and taxes are G = T = 200. Money demand is: \(M^{d}=P(.5Y-200i)\) The n..
consider the maximization problem u(c,l) subject to pc + wl = wT + Y, where c is consumption, l is leisure time, T is total time endowment, and Y is non-wage income. prove that if leisure is an inferior good then the labor supply function is upwar..
Suppose the marginal benefit of writing a contract is $100, independent of its length. Find the optimal contract length when the marginal cost of writing a contract of length L is: a. MC(L) = 30 + 4L. b. MC(L) = 40 + 5L.
How do you find AP, MP, TVC, TFC, TC, AVC, AFC, and ATC if the problem gives you a list of # of people doing the labor, quantity produced, fixed costs, and wage rate for example, wage rate is $100 a day, firm has $200 in fixed costs.
production of widgets (W) uses labor (L) as its only input. The production function is given by W=F(L)=8*L^.5 and the marginal productivity MPL=4/L^.5. If widgets sell for $10, the price of labor is $8/hour, and there is a fixed cost of $25.
Q is the number of body parts producted daily, K is the number of sheet-, metal presses in its manufacturing plant, and L is the number of labor-hours per day of sheet-metal workers employed by Dimex. Dimex is currently operating with eight sheet-..
The kinked demand curve in a duopoly market is defined by two equations P1 = 10.0.75 * Q P2 = 16-2 * Q Determine the price and quantity at the kink of demand curve Using the equation provide calculate and draw the MR curve
Consider again the Solow growth model and the following production function: a). If A = 2, L = 20,000, and K = 400, what is output b). Suppose the labor force grows by 5% so that it is now 21,000. By how much does output increase
Determine the two equal deposits, the first deposit required now and the second deposit at the end of year 6, so that you can withdraw $2,000 at the end of each year for the next 12 years. Assume that money earns 4% interest, compounded monthly.
If the long-run production function is q = O.4KL^0.5, what is the firm's short-run production function if K = 5 units What is the firm's output when L = 16 workers What is the firm's marginal product of labor and average product of labo
The information in the table given below are the results of a random sample of current home sales in your neighborhood that your boss has asked you to use to estimate relationship in selling price of house and number of square feet in it.
Suppose a government has no debt and a balanced budget. Suddenly it decides to spend 10 billion while raising only 8 billion worth of taxes. 1.) What will be the government deficit 2.) If the government finances the deficit by issuing bonds, what am..
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