Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 20P
To determine
Some alternative ways for stopping the unchecked flow of oil into GL Country.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
An electric utility company is considering a re-engineering of a major hydroelectric facility. The project would yield
greater capacity and lower cost per kilowatt-hour of power. As a result of the project, the price of power would be
reduced. This is expected to increase the quantity of power demanded. The following data are available
Effect of Reduced Price of Power
0.08
10,000,000
0.07
14,000,000
Current price ($/kWh)
Current consumption (kWh/year)
New price ($/kWh)
Expected consumption (kWh/year)
What is the annual benefit to consumers of power from this project?
The annual benefit is $
The village has a hiking lodge whose visitors use the lake for
recreation. The village also has a fish cannery that dumps
industrial waste into the lake. This pollutes the lake and
makes it a less desirable vacation destination. That is, the
fish cannery's waste decreases the hiking lodge's economic
profit.
Suppose that the fish cannery could use a different production method that involves recycling water. This would reduce the pollution in the lake to
levels safe for recreation, and the hiking lodge would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's
economic profit is $2,200 per week, and the hiking lodge's economic profit is $3,200 per week. If the fish cannery does not use the recycling method,
then the fish cannery's economic profit is $3,000 per week, and the hiking lodge's economic profit is $2,000 per week. These figures are summarized
in the following table.
Complete the following table by computing the total profit (the fish…
A, B and C please
Knowledge Booster
Similar questions
- Q10: complete the following using parts A and Barrow_forwardA manufacturer produces some output called "Product" using a raw material called Input". To production of 1 ton of Product requires 3/5 ton of Input. The manufacturer has a contract to deliver 50 tons of Product to Store M (Store M is the "market" for Product). Input is available in Spot N (Spot N is the source of Input, equivalent to "mine" om the Spot N. The ship Product and Input are $2 per ton per mile. We will help the manufacturer to find the total transport-cost minimizing factory location. To arrive at the answer, go through the following steps in parts (a), (b) and (c). (a) First consider two potential locations for the factory: Spot N and Store M. Calculate shipping costs by filling in the cells of the table below. Show your calculations Location of Factory Spot N Store M Input Shipping Cost Total Shipping Costarrow_forwardA competitive industry has production processes that generate pollution. ok with studies carried out on the affected population, the marginal costs associated with contamination are constant and CU500. for each unit of the good produced. these costs are associated with lost workdays, illness treatment costs, and the nuisance generated in the population. Currently the production level of the industry is 250 units and the market price is 1,500 (MU/unit). Market studies carried out by companies estimate that if the price rises At 1,800 (mu/unit) the quantity demanded would fall to 200 units and the marginal cost of the production of each company in this new production level is 1,300 (m.u./unit). Assume linearity in market demand and in the marginal costs of production of the companies Graph to justify your answers. A)Determine the optimal production level from the perspective of the whole of the society. Show your result graphically.arrow_forward
- A competitive industry has production processes that generate pollution. okay with studies carried out on the affected population, the marginal costs associated with contamination are constant and 500 u.m. for each unit of the good produced. These costs are associated with lost working days, illness treatment costs and the nuisance generated in the population. Currently the production level of the industry is 250 units and the market price is 1500 (um/unit). Market studies carried out by the firms estimate that if the price rises at 1,800 (mu/unit) the quantity demanded would drop to 200 units and the marginal cost of production of each firm at this new production level is 1,300 (m.u./unit). assume linearity in market demand and in the marginal costs of production of the firms. Graph to justify your answers. b)Graphically indicate and determine the magnitude of the social cost of the situation with a production level of 250 units.arrow_forwardA competitive industry has production processes that generate pollution. okay with studies carried out on the affected population, the marginal costs associated with contamination are constant and 500 u.m. for each unit of the good produced. These costs are associated with lost working days, illness treatment costs and the nuisance generated in the population. Currently the production level of the industry is 250 units and the market price is 1500 (um/unit). Market studies carried out by the firms estimate that if the price rises at 1,800 (mu/unit) the quantity demanded would drop to 200 units and the marginal cost of production of each firm at this new production level is 1,300 (m.u./unit). assume linearity in market demand and in the marginal costs of production of the firms. Graph to justify your answers. )Determine the level of tax that would have to be applied to production to achieve the social optimum.arrow_forwardpls help Speakarrow_forward
- (a) Total reserves of a non-renewable resource are 250 million tonnes. Annual consumption is currently 20 million tonnes per year and is expected to rise by 2% every year. After how many years will the stock be exhausted? (b) Suppose the government wanted the resource to last for 21 years and to do so decides to reduce the annual increase in extraction from its current rate of 2%. What new rate of annual increase would allow the government to achieve its targetr?arrow_forwardYou own a family farm, worth $500,000, and need to decide what to do with this year’s earnings of $400,000. (i) You could put the money in the bank and earn a safe 5% return. (ii) Or you could pay $200,000 to plant a new crop, which will yield a harvest in six months; if there is rain, the harvest will bring in $1.000,000 in revenues, but if there is a drought it will yield just $100,000 in revenues. (iii) A third alternative is to plant Santo drought-resistant seed corn, which will cost $500,000, but yield revenues of $1,000,000 if there is rain or $700,000 if there is no rain. You are risk averse, and your reference for family wealth (W) is given by U(W) = √W [Square root of W]. The probability of a summer drought is 0.33. Which of the three options should you choose? Explain.arrow_forwardA construction company has to sell at least 30 and 50 from type of equipment E1 and E2. respectively. The company has 270 hours monthly workmanship totally. E1 requires 1 hours workmanship and E2 does 3 hours. The benefits from E1 and E2 are 200 and 300 TL respectively. Find the economic numbers for E1 and E2 for the maximum benefit.arrow_forward
- Given the following information, what adjustment would be needed to account for the difference in the living area or the market condition between the subject property and the comparable property (choose the closest answer) Market Conditions Lot Size Adjustments Bath -0.50% (per month) Effective Age (Years) $1,000 (per year) Bedrooms $25,000 (per acre) Living Area (Sq. Ft) $45.00 (per sq. ft.) $1,250 (per bath) $3,000 (per bedroom)arrow_forwardQuestion 10OXAGON is an industrial city that will be built in NEOM. One of the factories interested to join there has been producing a dependable product used by farmers, municipalities, and suburbanites alike to control grass in fields and gardens. Contributions to NEOM revenue have been minimized by international dumping of generic glyphosate, as announced in mid-2021 due to Pandemic of COVID-19. The factory sales price was decreased from $4,072 to $60,308 per gallon to compete with the highly competitive pricing, and it is expected that the international price will be around $6,968 per gallon. Assume when the price was set at $4,072 per gallon, there was a prediction that in 5 years the price would inflate to $9,853 per gallon. Determine the interest adjusted rate for inflation, if the inflation is 11% and the interest is 3% per year real return is expected by the factory_____arrow_forward$500 Compute F10 = 5 i-10% $500 6 $500 $500 F = ? 10 10 12 13arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning