QUESTION 7 Assume that the oil extraction company needs to extract Q units of oil (a depletable resource) reserve between two periods in a dynamically efficient manner. What should be a maximum amount of Q so that the entire oil reserve is extracted only during the 1st period if (a) the marginali willingness to pay for oil in each period is given by P-27-0.5g. (b) marginal cost of extraction is constant at $3 per unit, and (o) discount rate is 2%7 199

QUESTION 7 Assume that the oil extraction company needs to extract Q units of oil (a depletable resource) reserve between two periods in a dynamically efficient manner. What should be a maximum amount of Q so that the entire oil reserve is extracted only during the 1st period if (a) the marginali willingness to pay for oil in each period is given by P-27-0.5g. (b) marginal cost of extraction is constant at $3 per unit, and (o) discount rate is 2%7 199

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. [Sometimes, it's useful to think about what fraction of a consumer's money they spend on each good, rather on how many units they buy. (a) Show that every x EX(p,m) can be written as x = f1(m/p₁,0) + f2(0, m/p2 ) + (1-f1-f2)(0,0) for some numbers f1,f2 20 with f1 + f2 ≤1. (b) Let f1 and f2 be as in part (a). Give an expression, in terms of f1 and f2, for the fraction pix₁/m of the consumer's money that they spend on good 1. (c) Let f1 and f2 be as in part (a). Give an expression, in terms of f1 and f2, for the fraction p2x2/m of the consumer's money that they spend on good 2
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Ewa spends all her 600 PLN bonus on the purchase of sweets and cosmetics. Draw the Ewa's budget line, knowing that her favorite sweets cost PLN 10 per pack and the price of cosmetics is PLN 25. •How will Ewa's situation be affected by the PLN 50 bonus increase? •What will happen if the price of cosmetics increases to PLN 30? •How, from the point of view of initial situation, we will evaluate the following quantitative combinations: –30 packages of sweets and 15 cosmetics –60 packages of sweets and 24 cosmetics –20 packages of sweets and 10 cosmetics –10 packages of sweets and 15 cosmetics
26. Describe the consumption pattern of the consumer based on the table below unit MU/P MU/P (sundae) fries 8 1st 2nd 17 5 3rd 1
1. Table 1 is the data for the per week household consumption Y and income X in the US. Table 1 data for household consumption and income Income per week (US $) (X) Consumption per week (US $) (Y) 80 55, 60, 65, 70, 75 100 65, 70, 74, 80, 85, 88, 120 79, 84, 90, 94, 98 140 80, 93, 95, 103, 108, 113, 115 160 102, 107, 110, 116, 118, 125 180 110, 115, 120, 130, 135, 140 200 120, 136, 140, 144, 145 220 135, 137, 140, 152, 157, 160, 162 240 137, 145, 155, 165, 175, 189 260 150, 152, 175, 178, 180, 185, 191 a. For each Xi, calculate the conditional expectation of Y: E(Y| Xi) b. draw the scattergram, with income being X-axis, consumption being Ү-аxis. c. Draw the E(Y| Xi) on the above figure d. Write the different representations of PRF and SRF. (like Y, = b, +b,X, +u,, E(Y|X = X,)=b, +b,X,, etc.)
Son 5 Marginal cost is given by 30 + 20Q - 12Q2. Fixed cost is 100. What is the average cost? Henüz 30 OA3Q? + 10Q + 70 + cevaplanmad 16,00 azennden aretlenmis 100 O B. 3Q? + 20Q + 30 + Sonyu aretle 100 OC 40 + 10Q + 30 + 30 O D. 4Q? + 10Q + 70 +
10. (Figure 5.6) Garth spends his income on ice cream and coffee, and coffee sells for $1 a cup. If ice cream sells for $1.50 per gallon, Garth will purchase: Coffee (cups) | 12- 11 10- 9 8- 7- 6- 5- 4 3- 2 34 5678 9 10 Ice cream (gallons) 8 gallons. 6 gallons. 2 gallons. O 1 gallon.
6 (i) FIGURE 6 (i) 22 18 10 1 2 3 Number of video games rented per month 4 All the questions below are referring to Figure 6 (i) and explain and show your computation in your answer. a) The marginal utility of the first video game rental is b) The marginal utility of the third video game rental is c) At which unit of video game, the marginal utility is zero. Total utility
1. There is a country, which is located in the south of the Mediterranean. This country's GDP is 500 billion USD and the population is 40 million. The total Used Electric Power capacity is 50 GW, the energy mix (electrical energy produced in one year by each primary source) is as follows; Hydro = 25 %, Photovoltaic = 5%, Wind = 10 %, Natural Gas = %40 and Coal = 20% a) Calculate the produced electrical energy by each primary sources for one year. b) Calculate the electrical energy consumed per capita and compare it with Europe average. c) The Electrical energy is 1/3 of the total energy consumed (TPES) in this country. Obtain the Energy intensity. d) Calculate the total CO₂emissions in one year while producing electricity.
Question 7 (10 points) Listen Figure 2-7 HOURS WITHOUT SLEEP Refer to Figure 2-7. Taking cause and effect into account, which of the following interpretations would be most reasonable regarding the relationship between coffee and hours without sleep? The less coffee a person drinks per day, the more time he can go without sleep. There is no relationship betwveen how much coffee per day a person drinks and how long he can go without sleep. The more coffee a person drinks per day, the more time he can go without sleep. The more coffee a person drinks per day, the less time he can go without sleep. Question 8 (10 points) V Saved CUPS OF COFFEE PER DAY
Explain the roleof costs in pricingdecisions anddescribe how variouscombinations of price,fixed cost, and unitvariable cost affect afirm’s break-even point
5. (12) Max is stocking up on ice cream and cookies; ice cream costs $2 and cookies cost 50 cents ($.50). The marginal utility gained from each treat is given in the table below. If Max is a rational utility maximizer and has $8 to spend, how many of each treat will they purchase, and in what order? Show your work. Qice cream MU of ice Qcookies MU of cream cookies 1234567 40 1 9 32 2 9 26 3 7 18 4 5 8 5 3 6 6 3 4 7 1