FARE*2700 Lab 3
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University of Guelph *
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Feb 20, 2024
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Department of Food, Agricultural and Resource Economics
University of Guelph, FARE*2700 Survey of Natural Resource Economics Fall 2023
Lab 3 –Take-Home Assignment Due by: 12:30 pm on November 22, 2023 (Late submission will NOT be accepted) Please submit your work as a single PDF file.
(70 Marks in Total)
1.
(12marks) To answer the following , please refer to Question #1 in-class portion of Lab (6 marks) If the fixed supply of water is 20 units, what is the efficient allocation for person A? What is the efficient allocation for person B? Explain.
Efficient allocation occurs when MC = MB, and in this case MC = 5. For person A, inverse demand function is P = 15 – 2Q. By replacing the price with the marginal cost, 5, Person A’s efficient allocation is 5 = 15 – 2Q, and Q is found to be 5. For person B, inverse demand function is P = 25 – 2Q, and by substituting in 5, Q is found to be 15. Thus, the efficient allocation when fixed supply of water is 20 units is 5 for A and 15 for B.
(6 marks) If the fixed supply of water is 4 units, what is the efficient allocation for person A? What is the efficient allocation for person B? Explain.
In this case, since only 4 units of water are being supplied, the higher value of water for each person must be considered in the efficient allocation. For person A:
For Person B:
When Q = 1, P = 13
When Q = 1, P = 23
When Q = 2, P = 11
When Q = 2, P = 21
When Q = 3, P = 9
When Q = 3, P = 19
When Q = 4, P = 7
When Q = 4, P = 17
In this case, Person B values the water more highly than Person A because their willingness to
pay for each quantity of water. For each price point while demand = 4, Person B is willing to spend more than Person A, which means that the highest value of water comes from only giving all four units of water to Person B. Thus, efficient allocation for Person A is 0 and Person B is 4. 2.
(30marks) A forestry firm hired you, an economist, to consult on the optimal harvest age
for a stand of trees. The forester has the secure private property rights to the stand, so rights are enforceable, exclusive, and transferable. He plans to harvest only once (i.e., this is a single harvest scenario).
a. (18 marks) The forester needs to determine when to harvest the trees. You are provided with
the following information:
Calculate the present value of net benefits for each harvest age and state which one would you recommend.
At age 30,
Total Timber Value = Volume * Price = $30,000
Total Harvest Cost = Volume * Harvesting Cost = $6,000
Initial Planting Cost = $1000
Total Discount = Volume * Discount Rate = $450
Thus, Profit = $30,000 – Total Cost = $30,000 – ($6,000 + $1,000 + $450) = $22,550
At age 50,
Total Timber Value = Volume * Price = $36,000
Total Harvest Cost = Volume * Harvesting Cost = $7,200
Initial Planting Cost = $1000
Total Discount = Volume * Discount Rate = $540
Thus, Profit = $36,000 – Total Cost = $36,000 – ($7,200 + $1,000 + $540) = $27,260
Since other parameters stay the same, volume of timber heavily increases the profit when at age 50. Thus, I would recommend harvesting at age 50.
b. (4 marks) Does it affect the recommended harvest age if the planting cost is reduced to $700? Explain.
Since the planting cost would be reduced in both age groups, reducing the planting costs does
nothing to actually change the amount of profit gained between the two harvesting ages. Even if Planting cost was $700, the profit at age 30 would be $22,850, and the profit at age 50 would be $27,560. Both profits simply increased by 300.
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Related Questions
も A:07
Final 1st a...
Wasit University
College of Engineering
Electrical Department
1st Course Examination / 1* Attempt
Subject: English language
Class: 2nd grade
Time: Three hours
2020 - 2021
Date: March 24, 2021
Note: - Submit your solution electronically through the provided link.
Also, you must attach the solution of all questions in a single PDF file.
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op (P
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(Hint: fill in the graph.)
D: 5000-1.5Q
S: 200+ 2.5Q
In the world market for scooters, Scooterland is an exporter.
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Typed numeric answer will be automatically saved.
5000
3995
3200
200
0
Scooters
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WP
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Only typed explanation of all four subparts otherwise leave it
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6. Elasticity and total revenue
The following graph shows the daily demand curve for bikes in Houston.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
PRICE (Dollars per bike)
300
275
)
250
225
175
150
125
100
75
50
25
0
0
+
6
12 18
24 30 36 42 48
QUANTITY (B)
Demand
54 60 66 72
Total Revenue
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(Suggested time- 12 mins.)
MPB
Q, Q. Q, Q, As
Use the labelled points in this graph to identify the requested area. Pay attention to
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your answer. Do not include any spaces, numbers, or symbols/punctuation in your
answer - just the letters close together.
(Part A) The area representing the change in TSC from switching from Q5 to Q2 is
(Part B) The area representing the PNB from the market's
allocation is
A (Part C) The area representing the change in TEB
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Which points represent a production level that could lead to unemployment?
12
10
Thousands of sedans
8
9
4
A
2
D
B
C
0-
0
2
4
6
8
10
12
Thousands of convertibles
Full text description
Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.
Q Search
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S LO
20
# 3
PRICE (Dollars per hot dog)
5.
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Homework (Ch 15)
5. Monopoly outcome versus competition outcome
Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the
city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power.
The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs.
%3D
Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition.
Competitive Market
+.
4.5
PC Outcome
3.5
3.0
2.5
S=MC
1.5
0.5
D.
120
140
160 180
09
QUANTITY (Hot dogs)
40
PI
MacBook Air
DA
DD
F8
F6
F5
F4
F2
%24
6.
7.
8.
9-
4.
2.
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Review -
A Bookmark
目
国
58 CDB 2 2020-2021 Online 16 of 26
A student created the following pre-writing flow chart for an essay in history class.
A new tariff was
passed in 1828 to
protect American
made goods from
foreign competition.
South Carolina
declared the tariff void
in their state, claiming it
was unconstitutional
under Amendment 10.
President Jackson
threatened military
force, and a
compromise was made
to lower the tariff.
Based on the information above, what historical event is most likely the topic of this paper?
O A. Monroe Doctrine
O B. Nullification Crisis
O C Louisiana Purchase
O D Three-Fifths Compromise
Mail
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UNITS OF
VARIABLE
TOTAL
MARGINAL
AVERAGE
PRICE OF
INPUT
PRODUCT
PRODUCT
PRODUCT
INPUT
TOTAL
VARIABLE
COST
AVERAGE
VARIABLE
COST
TOTAL FIXED
TOTAL
AVERAGE
TOTAL
MARGINAL
COST
COST
COST
COST
012345678
0
$1
$2
6
$1
2
15
$1
27
$1
37
$1
45
$1
50
$1
52
$1
50
$1
ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ
$2
$2
$2
$2
$2
$2
$2
$2
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Fill the Table
Total
Total
Fixed Variable
Total
Costs
Costs
Total
Average
Total Costs
Costs
$100
$140
$165
$210
$295
$425
$625
Product
(TFC)
(TVC)
$50
$50
$50
$90
$50
$115
$50
$160
$50
$245
$50
$375
$50
$575
1
4
9.
Total
Total
Fixed Variable
Total Marginal
Total
Costs
Costs
Costs
Costs
Product
(TFC)
$50
(TVC)
$0
|(TC)
$50
(MC)
na
1
$50
$50
$50
$50
$50
$100
2
$90
$140
$115
$165
4
$160
$210
$50
$50
$50
$295
$425
$245
6.
$375
7
$575
$62
LolcolN
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Table 1: Price and quantity for three types of product
[Jadual I: Harga dan kuantiti sontuk tiga jenis produk)
Product
[Produk)
Year 2019
[Tahun 20191
Price
(RM)
[Harga
(RM)
1.25
Year 2017
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[Tahun 20181
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(RM) Kuanti) (RM) Kuanttij
[Harga
(RAM))
1
[Tahun 2017)
Quantity
Quantity
Kuantitij
Price
Quantity
[Harga
(RM))
A
180
200
200
B
90
75
90
100
100
120
0.6
675
0.5
600
0.5
630
(1)
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[Kirakan nilai-nilai KDNK nominal pada 2017, 2016 dan 2019)
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[Kirakan nilai-nilat KDNK zebenar dan KDNK pendeflari pada 2018 dan 2019
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⑴Amount
£3,026.00
⑵Date and place of issue
8/August/2009,Guangzhou, China
⑶Tenor
At 90 days after date
⑷Maker
Guangdong Imp. & Exp. Co., Guangzhou
⑸Payee
Chemicals Import & Export Company London
⑴Drawer
Thames Enterprises Ltd., London
⑵Drawee
The National Westminster Bank Ltd., London
⑶Payee
Philips Hong Kong
⑷Date and place of issue
07/01/2001,London
⑸Amount
GBP79,014
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Request an interview
X
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○ A worksheet to help you organize your experiences, skills, and abilities to help you in
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OA quality written summary of your experiences and qualifications listed by time
O An official document that becomes part of your official file
O Should state what job you're applying for and how you found out about the job
A quality written summary of your qualifications organized by skills/abilities
Another opportunity to sell yourself that only 10 percent of applicants ever send
◇ Sent with a resume, giving you another chance to emphasize skills and positive
personal traits
A collection of letters, resumes, and applications that reflects on you and the quality
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The last paragraph of a letter of application
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Design Layout References Mailings Review
As the manager of Lewis Inc., a company that produces lamps, you conducted a
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used by your firm. (This is the short run in which capital is fixed.)
1
Week 7 Assignment Compatibility Mode Saved to this PC
Text Predictions: On
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2
W
3
Per unit capital costs are $20 and the price of lamps is $12 each (this is a
competitive market). Workers at Lewis Inc. are paid $60 per labor unit. (You can
think of one unit of labor as one worker, and each worker is paid $60.)
Fill in the blanks in the following table.
Hint: Please follow Table 1 on page 364 of the textbook. Please note that a competitive, profit-maximizing firm
hi
1
7
Labor
(L)
E
0
1
2
8
9
10
Accessibility: Unavailable
$
4
3
4
5
6
7
FI
.
R
Q
C
Capital
(K)
F5
%
8
8
8
8
8
8
8
8
8
8
8
L
T
i
F6
Output
(Q)
6
0
10
30
60
80
90
95
95
90
80
60
Marginal Product…
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Offices
Entrances
Age
AssessedValue ($'000)
4790
4
2
8
1796
4720
3
2
12
1544
5940
4
2
2
2094
5720
4
2
34
1968
3660
3
2
38
1567
5000
4
2
31
1878
2990
2
1
19
949
2610
2
1
48
910
5650
4
2
42
1774
3570
2
1
4
1187
2930
3
2
15
1113
1280
2
1
31
671
4880
3
2
42
1678
1620
1
2
35
710
1820
2
1
17
678
4530
2
2
5
1585
2570
2
1
13
842
4690
2
2
45
1539
1280
1
1
45
433
4100
3
1
27
1268
3530
2
2
41
1251
3660
2
2
33
1094
1110
1
2
50
638
2670
2
2
39
999
1100
1
1
20
653
5810
4
3
17
1914
2560
2
2
24
772
2340
3
1
5
890
3690
2
2
15
1282
3580
3
2
27
1264
3610
2
1
8
1162
3960
3
2
17
1447
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Typed Plzzzz And Asap
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The following graph shows the daily demand curve for bikes in Houston.
Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve.
Note: You will not be graded on any changes made to this graph.
240
220
200
Total Revenue
180
160
140
120
100
80
60
40
20
0
PRICE (Dollars per bike)
0
9
18
27
>
36 45 54 63 72
QUANTITY (Bikes)
00
8
Demand
90
81
99 106
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100
90
80
70
60
ATC
50
40
30
AVC
20
MC
10
10
20
30
40
50
60
70
80
90
100
QUANTITY (Thousands of lamps)
COSTS (Dollars)
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- S LO 20 # 3 PRICE (Dollars per hot dog) 5. History Bookmarks People Tab Window Help 令) 71% Mind Tap - Cengage Learning /index.html?deploymentld%359828119415547787292595253&elSBN=9780357133606&id%3D1069413986&snapshotid%-D2211990& * CENGAGE MINDTAP Q Search this course Homework (Ch 15) 5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. %3D Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market +. 4.5 PC Outcome 3.5 3.0 2.5 S=MC 1.5 0.5 D. 120 140 160 180 09 QUANTITY (Hot dogs) 40 PI MacBook Air DA DD F8 F6 F5 F4 F2 %24 6. 7. 8. 9- 4. 2.arrow_forwardpogle Chrome ent.psonsvc.net/#/question/e11ff315-a51f-4f27-8334-e96043b21297/03090c2e-bf7c-4193-af41-2fcd14c413bc Review - A Bookmark 目 国 58 CDB 2 2020-2021 Online 16 of 26 A student created the following pre-writing flow chart for an essay in history class. A new tariff was passed in 1828 to protect American made goods from foreign competition. South Carolina declared the tariff void in their state, claiming it was unconstitutional under Amendment 10. President Jackson threatened military force, and a compromise was made to lower the tariff. Based on the information above, what historical event is most likely the topic of this paper? O A. Monroe Doctrine O B. Nullification Crisis O C Louisiana Purchase O D Three-Fifths Compromise Mail Type here to search 立arrow_forwardUNITS OF VARIABLE TOTAL MARGINAL AVERAGE PRICE OF INPUT PRODUCT PRODUCT PRODUCT INPUT TOTAL VARIABLE COST AVERAGE VARIABLE COST TOTAL FIXED TOTAL AVERAGE TOTAL MARGINAL COST COST COST COST 012345678 0 $1 $2 6 $1 2 15 $1 27 $1 37 $1 45 $1 50 $1 52 $1 50 $1 ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ ଖ $2 $2 $2 $2 $2 $2 $2 $2arrow_forward
- Brief description of the pie chart for a proposalarrow_forwardFill the Table Total Total Fixed Variable Total Costs Costs Total Average Total Costs Costs $100 $140 $165 $210 $295 $425 $625 Product (TFC) (TVC) $50 $50 $50 $90 $50 $115 $50 $160 $50 $245 $50 $375 $50 $575 1 4 9. Total Total Fixed Variable Total Marginal Total Costs Costs Costs Costs Product (TFC) $50 (TVC) $0 |(TC) $50 (MC) na 1 $50 $50 $50 $50 $50 $100 2 $90 $140 $115 $165 4 $160 $210 $50 $50 $50 $295 $425 $245 6. $375 7 $575 $62 LolcolN 567arrow_forwardJadual 1 menurnfukkan beberapa data harga dan kuantiti untuk sebuah ekonomi zederhana jang menghasilkan darang dan perkhidmatan derikut.) Table 1: Price and quantity for three types of product [Jadual I: Harga dan kuantiti sontuk tiga jenis produk) Product [Produk) Year 2019 [Tahun 20191 Price (RM) [Harga (RM) 1.25 Year 2017 Year 2018 [Tahun 20181 Price (RM) Kuanti) (RM) Kuanttij [Harga (RAM)) 1 [Tahun 2017) Quantity Quantity Kuantitij Price Quantity [Harga (RM)) A 180 200 200 B 90 75 90 100 100 120 0.6 675 0.5 600 0.5 630 (1) Compute the values of nominal GDP in 2017, 2018 and 2019. [Kirakan nilai-nilai KDNK nominal pada 2017, 2016 dan 2019) (6 Marks/ Markah) Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year). [Kirakan nilai-nilat KDNK zebenar dan KDNK pendeflari pada 2018 dan 2019 (menggunakan tahun azas 2017)) (5 Marks/ Markak) (iii) Compute the percentage change in the real GDP in 2018 and 2019 from the preceding year. (Kinatan nerat…arrow_forward
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