Based on the table below, what is the optimal Level of Activity?Total benefitTotal costLevel of Activityof activityof activity00011021732443153864534622312203O O O O O5607 Based on the table below, what is the optimal Level of Activity? Level of Activity Total benefit of activity Total cost ofactivity 000 1 10 3 2 17 4 3 24 6 4 31 12 5 38 20 6 45 32 3 4 5 6 7Based on the table below, what is the optimal Level of Activity?O O O O O5607Total benefitTotal costLevel of Activityof activityof activity001235OOT1017243138645034622212

Detailed explanation: To determine the optimal level of activity based on the provided table, we…

Answered: Based on the table below, what is the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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18 16 14 12 10 8 6 4 2 2 There would be a shortage of D₁ 4 6 8 10 12 14 16 18 O 10 units if the price is $4 O 15 units if the price is $4 O 10 units if the price is $6
500 450 The graph on the right may help in answering question 25 400 350 300 250 200 150 100 50 O 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Quantity Demand MC Exter nality MC private MC Social A competitive tire manufacturing industry spews emissions into the air at47 per tire a marginal cost of 1.5-q, where q is the quantity of tires produced per month (in thousands). The industry marginal cost, excluding the cost of emissions (private marginal cost), is 4 + 4•q, expressed in $ per tire. The inverse demand curve for tires is p = 480 - 3-q, also expressed in $ per tire. In order to achieve the socially efficient level of tire production, which takes into account the optimal level of air pollution, the government levies a tax on the industry. What is the efficient pollution tax? $84 per tire $101 per tire $152 per tire Price
Costs and Benefits for Control of Nitrogen Oxide Emissions ($mil) Total Marginal Total Cost Benefit Marginal Benefit % NOX abatement (TC) (TB) Cost (MC) (MB) Marginal Net Benefit Total Net Benefit 10 50 400 8.00 20 110 780 7.09 30 180 1130 6.28 40 320 1440 4.50 50 590 1710 2.90 60 930 1820 1.96 70 1420 1890 1.33 80 2020 1910 0.95 90 2860 1915 0.67 100 3870 1917 0.50
4. When handling insects, knowing where the pests are thickest can help save on insecticide usage. But scounting for bugs also comes at a price. Determine the appropriate blend of insect scouting and insecticide to manage your insect issues on the farm. Complete the following worksheet considering the different strategies for soybean production and answer the accompanying questions. The price of insect scouting is $30 per hour and insecticide is $6 per quart. Strategy Scounting (hours) Insecticide (quarts) Input Substitution Ratio Input Price Ratio 1,200 40 600 80 300 D. 120 120 (a) What economic question/opportunity does this address? What is the appropriate decision rule for input substitution? What does that rule to seek to achieve (be more specific than saying "profit maximization")? (b) What is the profit maximizing strategy? What is the cost associated with that strategy? (c) Explain how the input price ratio will change if both input prices decrease from the initial scenario by…
C.F5 % 16 5 F6 6 PRICE F7 87 63 & 42 36 24 15 0 Refer to Figure 10-5. The socially optimal quantity of outpurus O a. 240 units, since the value to the buyer of the 240th unit is equal to the cost incurred by the seller of the 240th unit. O b. 240 units, since the value to society of the 240th unit is equal to the cost incurred by the seller of the 240th unit. O c. 420 units, since the value to the buyer of the 420th unit is equal to the cost incurred by the seller of the 420th unit. O d. 420 units, since the value to society of the 420th unit is equal to the cost incurred by the seller of the 420th unit. F8 * 8 240 8 QUANTITY F9 ( 9 420 Y JUDUL F10 Supply O Social Value Demand -O- ) F F11 O:+ F12 || PrtSc 000 =
5. The relationship between marginal and average costs Consider the following scenario to understand the relationship between marginal and average values. Suppose Kenji is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Kenji's free-throw percentage for each game and his overall free-throw average after each game. Game Result Season Total Game Free-Throw Percentage Average Free-Throw Percentage Game 1 80 2 UAWN 8/10 4/10 2/8 2/4 6/8 8/10 12/20 14/28 16/32 22/40 80
Quantity Marginal of Total Cost of Pollution Cost Reduction Reduction 1 20 20 50 30 3 110 60 200 90 5 380 180 6 660 280 Use the cost information from the table for a firm creates pollution. If there is a pollution charge of $45 per unit, how much will the firm reduce its pollution? O 1 4 3.
25. Suppose that there is a large farm and a large recreation firm located on a river. The farm is upstream of the recreational area. The farm uses the streamflow for irrigation. Let S be the amount of streamflow used by the farm and suppose its marginal benefit for irrigation is given by MB-5000-15S. Use of streamflow by the farm is costly to the recreational firm, though, because of lost opportunities for boating, fishing, and camping. Suppose this marginal cost is given by MC=5s. (a) Draw a sketch of the MB and MC curves for use of S by the farm. On your graph, show the efficient level of S by the farm. Solve for this amount from the equations. (b) If unregulated, the farm uses streamflow at a price of zero. Show on your graph what S this corresponds to. Solve for it from the equations. (c) If the government sets a tax price on streamflow, what tax price per unit of S will result in the farm using the efficient level of streamflow? Show on your graph and find with the equations. (d)…
3. The relationship between marginal and average costs Consider the following scenario to understand the relationship between marginal and average values. Suppose Paolo is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Paolo's free-throw percentage for each game and his overall free-throw average after each game. Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage 6/8 75 8/16 10/20 18/30 26/40 Game 1 2 3 4 5 RCENTAGE 6/8 2/8 2/4 8/10 8/10 On the following graph, use the orange points (square symbol) to plot Paolo's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 90 75 Game Free-Throw Percentage A Average Free-Throw Percentage
A county govermment has constructed a small dam across a local river in order to control flooding and regulate river flow downstream. However, although the dam has significanty reduced the cost of flooding that used be incurred by the community from what used to be frequent floods, the dam has also eaten-up some of the farmland upstream of the river, thus causing loss of revenue from farming and other related businesses. In performing a benefit-cost analysis of the dam project, which of the folowing is the most traditional form of calculating the B-C ratio for this project? OA PW(Reduced flood conts) - PW(Loss of revenue from farming and related businesses) Initial project costs + PW(Annual O &M Costs) B-C PW(LOss of revenue from farming and related businesses) - PWIReduced flood conts) Initial project costs PW(Annual O & M Costs) OB. B-Ce PW(Reduced flood costs) Initial project costs + PW(Annual O & M Costs) PW(Loss of revenue from farming and related businesses) Oc. B-C- D. B-C=…
Table 1: Market for Skis P 0 20 40 60 80 Qd 25 20 15 10 5 100 0 Qs 0 4 8 12 16 20
7. The table below provides information about the growth of a pine forest in Georgia. The price of the harvested timber is $40 per cubic foot and the forest only provides timber benefits. Age (years) Current annual increment Volume (cubic feet) Mean annual increment 10 814 1,992 81.4 81.4 20 99.6 117.8 144.6 3,438 5,056 6,750 30 114.6 40 126.4 161.8 50 135 140.4 169.4 167.4 60 70 8,424 9,982 11.328 12,366 142.6 141.6 155.8 134.6 80 90 100 137.4 103.8 13,000 130 119.4 105.6 63.4 110 13,134 13.4 120 12.672 -46.2 (A) When should the forest be harvested if the objective is to maximize the average annual timber volume growth (l,e., biological rotation)? (B) What are two problems with using this rotation age to manage forest lands? CI Will this rotation age be longer or shorter than the rotation age that makimizes the present value of the total timber income over multiple rotations? Why?

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