A large electric utility company spews 59 million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $1.9 billion in capital over the next five years to reduce its annual emissions by 5%. More will be spent after five years to reduce greenhouse gases further. a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces 3 billion tons of greenhouse gases each year, how much capital must be spent to reduce total emissions by 3% over the next five years based on your answer in Part (a)? a. The implicit cost of greenhouse gas is S per ton. (Round to the nearest cent. )

A large electric utility company spews 59 million tons of greenhouse gases (mostly carbon dioxide) into the environment each year. This company has committed to spending $1.9 billion in capital over the next five years to reduce its annual emissions by 5%. More will be spent after five years to reduce greenhouse gases further. a. What is the implicit cost of a ton of greenhouse gas? b. If the United States produces 3 billion tons of greenhouse gases each year, how much capital must be spent to reduce total emissions by 3% over the next five years based on your answer in Part (a)? a. The implicit cost of greenhouse gas is S per ton. (Round to the nearest cent. )

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 10TY

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Your firm specializes in recycling used plastics into consumer goods. You have three production opportunities: 1. You can produce plastic utensils for a revenue of $30,000 while production will cost $15,000. 2. Alternatively, you can produce lampshades: you calculate that at the optimal production, you expect to sell 2,000 lampshades every year at $10 each, and your average total cost per lampshade will be $2. 3. You also have the option to shut down your factory and produce nothing at a cost of $1,000 a year. Which opportunity do you choose? 4 Instead of working hard, Kendall Square Inc’s manager can shirk and not improve costs. In order to incentivize her hard work, Kendall Square Inc’s shareholders want to give the manager a bonus if they see that variable costs are cut by half. What is the maximum bonus that shareholders would be willing to give?
Assume you are pursuing a bachelor’s degree and you have 40 hours to divide between work and school in a week. You choose the amount of time you spend on each based on the classes you take and the hours you request at work. The degree will take you 3 years to complete if you dedicate 40 hours a week and do not take summers off. Obviously, if you devote no time to school, you never get your degree. You have been going to school full time for two quarters. In the third quarter, you do not receive as much loan money as you anticipate and need. You decide to work 20 hours a week to make up the difference and take fewer classes. What is your opportunity cost? Make sure to include how this change will factor into the length of time it will take you to finish your degree.
A dressmaker can sew 800 garments with 160 bolts of fabric and 3,000 hours of labor. Another dressmaker can sew 800 garments with 200 bolts of frabic and 2,000 hours of identical labor. Frabric cost $80 a bolt and labor cost $10 an hour. a.) is it possible for both methods to be techically efficient? why or why not? b.) is it possible for both methods to be economically efficient? why or why not?
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Assume the average cost when producing 4 units is 10, the average cost of producing 6 units is 8, the average cost of producing 8 units is 6, the average cost of producing 10 units is 9, and the average cost of producing 12 units is 11. If you're producing 6 units, what should you do to minimize average costs? a) produce exactly the same, I'm already minimizing costs! b) produce more c) produce less Please, help me understand how to solve future problems of the same kind through step by step solution.
The per-unit cost of an item is its average total cost (= total cost/quantity). Suppose that a new cell phone application costs $200,000 to develop and only $0.50 per unit to deliver to each cell phone customer. a. What will be the per-unit cost of the application if it sells 100 units? b. What will be the per-unit cost of the application if it sells 1,000 units? c. What will be the per-unit cost of the application if it sells 1 million units?
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The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed: Crew size 2 3 4 5 6 7 8 9 10 11 12Fish caught (100 lbs/week) 3 6 11 19 24 28 31 33 34 34 33 b) How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?c) How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per person?d) Suppose the owner can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $150 per week. Assuming that the owner of the trawler is interested in maximizing profits, determine the optimal crew size.
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A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his implicit costs? 54,000 52,000 106,000 none of the above
Two important industries on the island of Bermuda are fishing and tourism.According to data from the Food and Agriculture Organization of the United Nationsand the Bermuda Department of Statistics, in 2009 the 306 registered fishermen inBermuda caught 387 metric tons of marine fish. And the 2,719 people employed byhotels produced 554,400 hotel stays (measured by the number of visitor arrivals).Suppose that this production point is efficient in production. Assume also that theopportunity cost of 1 additional metric ton of fish is 2,000 hotel stays and that thisopportunity cost is constant (the opportunity cost does not change).a. If all 306 registered fishermen were to be employed by hotels (in addition to the2,719 people already working in hotels), how many hotel stays could Bermudaproduce?