When faced with alternatives having unequal lives, do the following when calculating the benefit-cost ratio. O Use an Incremental B/C approach O Compare all alternatives over a common planning horizon At the end of the planning horizon, provide estimates for residual benefits and salvage values for useful lives beyond the planning horizon All the mentioned alternatives
Q: (Figure: Output Levels II) The socially optimal output level could be achieved by a government quota…
A: The socially optimal point is where the allocation of resources maximizes overall societal welfare,…
Q: QT = 200 -.01PT +.005PM -10PG +.01I +.003A 1. Characterize this function by circling all in the…
A: A function is a mathematical way of showing the relationship between different variables. In…
Q: Suppose the demand and supply functions for product X are as follows:…
A: Demand is the desire of an individual ability and willingness to pay for a product. The demand is…
Q: 1. Barriers to entry A monopoly, unlike a perfectly competitive firm, has some market power. Thus,…
A: Monopoly refers to a market situation at which there is only one single seller selling a product…
Q: There are two economies: Mexico and the United States. On year 1, the Mexican economy produced $3000…
A: Production is the method of creating goods and services in an economy. It encompasses any economic…
Q: Explain the following identity: C + G + I + NX ≡ Y ≡ YD + (TA − TR) ≡ C + S + (TA − TR)
A: National income refers to the total monetary value of all goods and services produced within a…
Q: In the short run, profits when a competitive firm shuts down are -$7600, and they are -$550 when the…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: In the neoclassical growth model, suppose the per worker production function is y=2k0.5 Suppose…
A: A steady-state is a condition or a state in which all variables remain constant and do not change…
Q: The following is a table of two countries showing labor cost to produce Good A to Good J; A B C D…
A: Comparative Advantage:When a country can produce goods at lower opportunity costs than another,…
Q: You and your college roommate eat three packages of Ramen noodles each week. After graduation last…
A: ***Since the student has posted multiple questions, the expert is required to solve only the first…
Q: have identical production 4. Suppose two countries constant-returns-to-scale functions and start…
A: To determine which country will exhibit faster changes in capital per effective worker in the first…
Q: Consider two people who are currently out of work. Bernie is not looking for work because there have…
A: Discouraged worker are those which are not actively looking for work as they believe that no…
Q: P 34 30 22 18 E2 E1 O A subsidy for buyers A tax on buyers A tax on sellers A subsidy for sellers S…
A: Market dynamics refer to the dynamic interplay of supply and demand, price fluctuations, and…
Q: (Ch8) The Central Limit Theorem (CLT) implies that _____. Question 9Select one: the…
A: The Central Limit Theorem (CLT) is a fundamental theorem in statistics that describes the shape of…
Q: draw a graph of a product without any externality
A: An adverse effect or result of a certain economic operation or transaction that has an impact on…
Q: Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying…
A: Nash equilibrium is a situation where no player has an incentive to deviate from the strategy of…
Q: Employment 0 1 2 3 4 5 6 4-5 workers. 3-4 workers. 0-1 workers. Product 5-6 workers. 0 6 11 15 18 20…
A: Perfect competitive market:In this market, there are large numbers of buyers and sellers. They sell…
Q: Consider a monopolistic competitive industry with 4 firms producing the same good. The (inverse)…
A: Total 4 firms are there in the monopolistic competitive industryInverse Demand functionp = 30 - QQ =…
Q: $11. Anne and Bruce would like to rent a movie, but they can't decide what kind of movie to get:…
A: The Nash equilibrium is a form of game that involves two players. The equilibrium is reached at a…
Q: In Figure 12-3, one can tell from the graph that the monopolist will earn a positive profit only if…
A: A single seller in the market for goods is called a monopoly market. The marginal revenue is the…
Q: How do you make people believe that the banking system is safe? In the old days it was often done…
A: The provided question has been answered from the generalized perspective of financial…
Q: Consider an economy characterized by the following equations: C=750 +0.75Y+0.05W 1=250 where C is…
A: Aggregate expenditure is the sum of all expenditures undertaken in an economy. This includes…
Q: A monopoly has a constant marginal cost of production of $4 per unit and no fixed costs. In the…
A: Marginal cost (MC) is a fundamental concept in economics that represents the additional cost…
Q: A new manufacturing facility will produce two products, each of which requires a drilling operation…
A: The equivalent annual cost represents the annual cost of a project or investment over its entire…
Q: Imagine a duopoly in which two firms, A and B, produce the monopoly profit-maximizing output and…
A: This can be defined as the most effective and efficient form of market in which no single producer…
Q: Which of the following events would definitely cause a decrease in the equilibrium quantity of…
A: Market dynamics refer to the dynamic interplay of supply and demand, price movements, and customer…
Q: 2. The roles of money Lorenzo wants to purchase a new computer and go to the Caribbean for spring…
A: Money is widely accepted transaction prices that hold value over a time period. The value of money…
Q: (Ch7) Historically, the default rate on a commercial loan is 20 percent. If a bank makes 100…
A: The objective of the question is to find the probability that more than 25 loans will result in…
Q: Suppose that in 2016 Canada's automobile manufacturers produced 2 million cars priced at $20 000…
A: Nominal national income measures the market value of final goods and services produced by residents…
Q: Rubber for erasers is produced in the market. There are equations for the Supply and Inverse Demand…
A: Perfect competition is a market structure in which there are many buyers and sellers, all selling an…
Q: For each of the scenarios in the following table, indicate the most likely reason for the difference…
A: Human capital refers to the ability, skills, and aptitude of individuals which contribute to…
Q: The following table shows data on consumption, investments, exports, imports, and government…
A: Gross domestic product is a monetary measure of the market value of all the final goods and services…
Q: Number of Workers 0 1 2 3 4 5 6 O is 5 O is 7 Total Product O is 7.5 0 8 25 30 34 Marginal Product…
A: Marginal product is referred to as an extra product that is produced on adding an additional unit of…
Q: Roughly $39 billion in manufacturing incentives for chip plants known as fabs, as well as material…
A: Disclaimer: Since you have provided so many subpart of a question I am allowed only to solve the 1st…
Q: A German worker takes 600 hours to produce a car and 3 hours to produce a case of wine. A French…
A: Opportunity Cost: It is the cost of the next best alternative forgone for doing an…
Q: The following graph shows aggregate demand and short-run aggregate supply. 1.) Use the line drawing…
A: A consumer always tend to save more with the rise in their income level. Moreover, they prefer to…
Q: Figure: Guns and Butter Guns (per period) 18 16 12 8 4 0 A Reference: Ref 2-2 4 8 B 12 Production…
A: A production possibility curve (PPC) can be defined as a graphical representation of the combination…
Q: Use the following consumption schedule to answer the next question. At income level 3, the amount of…
A: There are two curves provided in a (Income - Consumption ) plane , which are to be identified as…
Q: Which restrictive practice is an example of bundling? ONone of the choices are correct. Retailers…
A: Bundling typically provides a benefit for the consumer by helping them to acquire multiple items or…
Q: An expansionary fiscal policy shifts the aggregate demand curve Select one: a. to the right and is…
A: The postwar period shows how Keynesianism has grown in terms of its ability to alleviate economic…
Q: Suppose the price elasticity of demand for bread is 1.5. If the price of bread falls by 6 percent,…
A: Price elasticity of demand refers to the percentage change in the quantity demanded of a goods or…
Q: Ty grows pumpkins. When Ty leases 1 field for $60 a day and capital for $40 a day, his average total…
A: Total cost shows the total cost incurred on the production of a good. Total cost includes fixed cost…
Q: Question 4. According to the textbook, when a supervisor tells someone that his or her performance…
A: Human resource management and organizational psychology are related to the issue you presented. It…
Q: Suppose a movie theater determines it can charge different prices to patrons who go to weekday…
A: Price elasticity of demand refers to the percentage change in the quantity demanded of a goods or…
Q: iples of Microeconomics Spring20 spring21 Wage rate Idollars per hour 8 2 P 0 40 80 120 160 Quantity…
A: Minimum wage is a legally mandated hourly wage that employers must pay their workers, ensuring that…
Q: Ways to reduce dependence on forecasts, that normally make the least economic sense: a. Reduce your…
A: Substitute goods are the ones that can be substituted for other goods that is when the price of one…
Q: PRICE 7 50 C. Select one: Demand a. perfectly elastic. b. inelastic. 12 QUANTITY Refer to Figure…
A: Elasticity refers to the responsiveness of change in demand to the change in price. Elasticity…
Q: Match the definition on the left with its term on the right. All of these terms ARE available in the…
A: Economies of Scale: Cost advantages gained when a firm produces on a larger scale, resulting in…
Q: 3. Consider a market for a good with the following demand function: Q = 120-2p where Qis quantity…
A: A monopoly is a market structure in which there is only one seller of a particular good or service.…
Q: A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke…
A: Consumer Price Index (CPI): A measure of the average change in prices paid by the urban consumers…
Step by step
Solved in 3 steps
- The following data is provided for a PPP project To the People To the Government $1.8 million ndw and $200,000 every З уears $12d000 per year Benefits $95,000 per year beginning now Cost Disbenefits $35.000 per year Savings Calculate the modified benefit/cost ratios using an interest rate of 10% per year and an infinite project period. The modified B/C ratio is 07682The modified B/C ratio includes maintenance and operation costs and treat them in a manner similar to benefits. Select one: True FalseComparison of five mutually exclusive alternatives is shown. One must be accepted. According to the B/C ratio, which alternative should be selected (costs increase from A to E). AB/C Comparison Ratio A versus B 0.75 B versus C 1.4 C versus D 1.3 A versus C 1.1 A versus D 0.2 B versus D 1.9 C versus E 1.2 D versus E 0.9 O a. B O b. D Ос. А O d. E O e. C
- Required information The following data is provided for a PPP project. To the People To the Government Benefits $130,000 per year beginning now Cost $1.8 million now and $200,000 every 3 years Disbenefits $75,000 per year Savings $100,000 per year Calculate the conventional benefit/cost ratios using an interest rate of 7% per year and an infinite project period. The conventional B//C ratio isFour mutually exclusive revenue alternatives are being compared using the B/C method. Which alternative, if any, should be selected? Incremental B/C when compared with alternative A OOOO A B с D Alternative ABCD Initial cost 15 18 30 35 B/C ratio vs. "Do Nothing" 1.52 0.92 1.31 1.47 B 0.95 C 0.71 1.85 - D 0.89 1.31 1.35A public works project has an initial cost of P1 000 000, benefits with a present worth of P 1 500 000, and disbenefits worth of P 400 000. What is the benefit cost ratio? Answer:
- The following data is provided for a PPP project. To the People To the Government $1.8 million ndiw and $200,000 every 3 years Benefits $95,000 per year beginning now Cost Disbenefits $35,000 per year Savings $120.000 per year Calculate the conventional benefit/cost ratios using an interest rate of 10% per year and an infinite project period. The conventional B/C ratio is 07882There are five alternatives for improvement of a road. Determine which alternative should ve chosen if the highway department is willing to invest as long as there is a B/C ratio of at least 1.00. Alternatives Annual benefits Annual cost 1,000,000.00 1,400,000.00 2,100,000.00 2,700,000.00 3,400,000.00 A 900,000.00 1,300,000.00 2,800,000.00 3,300,000.00 4,200,000.00 В C D EUsing the incremental B/C analysis (AB/C). Determine the best alternative, i=10% First cost O &M Cost/year Benefit/year Salvage value Life in years A 45,000 $4,000 $15,000 $9,000 B $25,000 $1,500 $9,500 $5,000 10 с $35,000 $3,000 $14,000 $7,000 D $15,000 $2,000 $8,000 $3,000
- In a modified B/C ratio:a. disbenefits and M&O costs are subtracted from benefitsb. disbenefits are subtracted from benefits, and M&O costs are added to costsc. disbenefits and M&O costs are added to costsd. disbenefits are added to costs, and M&O costs are subtracted from benefitsRequired information The following data is provided for a PPP project. Benefits Disbenefits To the People $140,000 per year beginning now $25,000 per year Cost Savings Calculate the conventional benefit/cost ratios using an interest rate of 11% per year and an infinite project period. The conventional B/C ratio is To the Government $1.8 million now and $200,000 every 3 years $95,000 per yearPerform a Benefit/Cost Analysis on the two project options below for a toll plaza renovation. What is the incremental B/C? Which option should be selected? OPTION Y $5,400,000 $2,350,000 $343,000 OPTION Z $14,240,000 S1,915,000 Initial Cost Annual Cost Annual Disbenefits $196,500 Life 00