The city of Toledo is considering adding additional storm water storage facilities so that it will never have sewage overflows. Economists have monetized the following effects over the expected useful life of the storm water storage facilities. Assume these are the only relevant effects (in millions of dollars): Federal grant: Construction and maintenance costs: $7 Toledo residents' total willingness to pay: $4 All other's total willingness to pay: $5 Assume only the city of Toledo residents have standing. Anyone outside of the city does not have standing. The "Federal grant" is the dollar amount the city of Toledo can get from the federal government to help cover the cost of the construction. The "Federal grant" can be thought of as a federal subsidy for the local project. a. Conduct a simple benefit-cost analysis for the city. Is it efficient for the city of Toledo to build the storm water storage facilities? b. Considering positive externalities from the project beyond the city of Toledo, what is the maximum efficient amount for the federal grant subsidy? c. If everyone in the nation has standing, is it efficient for the city of Toledo to build the storm water storage facilities?

Q: which are the Regional Economic Influences on Property Values?

A: Property values: The property values indicates the value of a piece of real estate, which is depends…

Q: Manipulate the graph to show what will happen to supply and demand in the market for loanable funds…

A: Loanable funds are defined as the theory for determining the rate of interest in the market. The…

Q: What impact do small business owners have on the country’s economy?

A: The objective of this question is to understand the role and impact of small businesses on a…

Q: Does reducing purchasing power of a consumer decrease inflation in the economy?

A: Cost increases for virtually all goods and services in the economy are referred to as inflation.…

Q: An ________ is someone who starts a new business or introduces new products into the economy

A: Meaning of Managerial Economics: The term managerial economics mainly focuses on the…

Q: Repayment of loan with interest is a capital expenditure True/False

A: # The upgradation for maintenance of physical assets is counted as capital expenditure.

Q: Q:7 a,b and c

A: We are going to solve for Pure Strategy Nash Equilibrium to answer this question.

Q: 10. Understanding marginal and average tax rates Using the information provided on the income tax…

A: The marginal tax rate is the additional tax income due to a change in tax liability. The marginal…

Q: Determine if each transaction is included in the Gross Domestic Product (GDP) and mark each item as…

A: " Since you have posted a question with multiple sub-parts, we shall answer the first sub-parts . To…

Q: 4. The J-curve Effect: Time Path of Depreciation Consider trade in automobiles between the United…

A: J-curve refers to the curve showing the currency depreciation of a country. The J-shaped is an…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: What are the key taxes levied which can be collected by state, territory, and local government in…

A: There are the key taxes levied by which can be collected by the state government in Australia that…

Q: What are the factors used to measure economic well being?

A: The economics is derived from the GREEK word OKIONOMIA meaning management of household. It give the…

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.