Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Chapter 16, Problem 1ST
a:
To determine
Calculate the present worth.
b:
To determine
New combination.
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Compare placing a tax on gasoline to a mandated increase in the average fuel efficiency of each car in terms of reducing the usage of gasoline, reducing greenhouse gases, and also providing consumers with choice in their vehicle selection. Analyze the impact on consumers, service stations, and car manufacturers.
Nobel Prize-winning economist Gary Becker suggested that prohibited drugs should be legalized and then taxed. This would the seller's cost and government revenue. a) increase; decrease b) decrease; increase c) increase; increase d) decrease; decrease
You must show your work or you may not get credit.
You are the economic advisor of the ruler of Pongo. Suppose the people in the country of Pongo loves eating worms and pine cones. The price of a worm is $2 and the price of a pine cone is $6. As this land is ruled by the super awesome and awesomely benevolent Dr. Lee, he ensures all people have $24,000 each day to spend on worms and pine cones. All the people have the same marginal rate of substitution for worms and pine cones which is presented below:
MRS = [MU(Worms)/MU(Pine Cones)] = 4(Qw/Qp)
Please help the super awesome leader make his people as happy as possible subject to the information provided above. Specifically, how many worms and pine cones should each person eat per day? [Hint: Maximize happiness subject to budget constraint.]
Chapter 16 Solutions
Contemporary Engineering Economics (6th Edition)
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