ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Chapter 9, Problem 73P

(a)

To determine

To calculate:The no. of years the treated part last to be the preferred alternative if installed cost of corrosion treated part is $400

(b)

To determine

To calculate: The no. of years the treated part last to be the preferred alternative if untreated part last only for 4 years.

(c)

To determine

To calculate:The no. of years the treated part last to be the preferred alternative if MARR is 12%.

(d)

To determine

To calculate: The no. of years the treated part last to be the preferred alternative if sub part (a), (b) and (c) happen simultaneously.

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4. Consider two polluting firms, with the marginal abatement costs of polluters 1 and 2, respectively, equal to MAC₁ = 20-E1 MAC2 = 12-E2 a. What is the unregulated level of pollution for each firm? b. Assume policymakers have decided to cut the level of pollution in half. The way they intend to accomplish this goal is to require both firms to cut their pollution in half. What are the total costs of abatement from the policy? And how are these costs distributed between the firms? c. Is this uniform quota on emissions across firms the most cost-effective manner in which to reduce emissions by 50%?

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ENGR.ECONOMIC ANALYSIS

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