Suppose you work for United Airlines. You have been assigned to conduct a cost-benefit analysis for United Airlines on the question of whether or not United should offer service from Lynchburg Regional Airport to Washington Dulles International Airport (DC-Northern Virginia area). Stopping short of doing any actual calculations, discuss what would be involved in doing this analysis for United. (Even though you don’t have to do the actual calculations, you should be specific as to how you would do the calculations and obtain the necessary inputs.)
Q: Suppose the Fed decided to purchase $100 billion worth of government securities in the open market.…
A: An open market means an economic situation that is almost close to free trade.
Q: Consider a homogeneous goods industry where two firms operate and the linear demand is given by p(y1…
A: Given Market demand curve: py1+y2=a-by1+y2 Here p is the price and y1 and y2 is the output produced…
Q: The cartel of copper exporting countries is called COPEC. As part of an international trade…
A: Price elasticity of demand is defined as the proportional change in the quantity demanded due to the…
Q: For the normal-form game shown here, what is the set of rationalizable strategy profiles? 2 b 0,5 1…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: 1. With reference to the above diagram, calculate the equilibrium level of income after the…
A: When there is only consumption and investment, aggregate expenditure is represented by curve A1.…
Q: The government can use _____________ in the form of ____________________ to increase the level of…
A: Fiscal policy refers to the government's utilization of taxation, public spending, and borrowing to…
Q: 3) The cartel of copper exporting countries is called COPEC. As part of an international trade…
A: Price elasticity of demand is a measure of how sensitive the quantity demanded of a good or service…
Q: of fixed costs such as building maintenance and equipment is facilitated by an increased number of…
A: Purchasing power refers to the amount of goods and services that can be acquired with a given amount…
Q: onsider a homogeneous goods industry where two firms operate and the linear demand is given by p(y1…
A: Given information Market demand curve: py1+y2=a-by1+y2 Here p is the price and y1 and y2 is the…
Q: A. State the first theorem of welfare economics of a production and exchange economy. B. Which…
A: The way in which the social welfare is affected or impacted due to the allocation of resources is…
Q: Which description best defines SOFT SKILLS? A-Interpersonal people skills that can be used in every…
A: A combination of people skills, social and communication skills is referred to be as soft skills in…
Q: Please answer correct explain please asap please Don't answer by pen paper plz.
A: As the CEO of Citigroup, my vision would be to establish Citigroup as a leading Fintech player in…
Q: There are 100 people who want to sell their used cars. Everybody knows that fraction q of these cars…
A: Number of people who want to sell used cars: 100 Fraction of q of these cars is peaches Fraction of…
Q: 1. Consider the situation of two firms in the same industry and operating in the same mar- ket. Firm…
A: Firm A controls 70% of the market share Firm B controls 7% of the market share Other 3 firms share…
Q: thin the New Classical framework, whether an expansionary monetary policy affects output or not…
A: Unanticipated changes can occur in various aspects of the economy, including policy actions, market…
Q: Explain why the percentage of all money paid to hospitals “out of pocket” is much smaller than the…
A: The given question is following: - We have to explain why the percentage of all money paid to…
Q: Suppose the government regulates the price of a good to be no lower than some minimum level.…
A: An individual’s willingness to pay for each unit of the quantity he or she wishes to consume is…
Q: The figure shows the cost structure for a monopolistically competitive firm selling a particular…
A: In a monopolistically competitive market, There exists a large number of buyers and sellers. The…
Q: Describe the idea Scarcity and Choice in economic concept in 200 words. Give examples.
A: The concepts of scarcity and choice are fundamental to economics and based on the study of how…
Q: 8) Patents and copyrights A. discourage invention and innovation can be used to correct external C.…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 5. Priyanka has an income of £90,000 and is a von Neumann-Morgenstern expected utility maximiser…
A: The Von Neumann-Morgenstern (VNM) utility index is an index that measures an individual's preference…
Q: Owing to increasing, food and transport prices, the Consumer Price Index (CPI) in South Africa…
A: Making economic policy can be challenging because it requires balancing an intricate framework of…
Q: Figure 3-5 Price $20 15 10 Quantity Refer to Figure 3-5. In a free market such as that depicted…
A: Market demand and Supply: In the market for a product, we have the demand and the supply curves. And…
Q: Review the graph at right for a nonlinear price discriminating monopolist relying on two prices, $80…
A: Consumer surplus refers to benefit received by consumers that pay a price lower than their willing…
Q: c) Suppose the inverse demand curve in a market is D(p) =a-bp, where D(p) is the quantity demanded…
A: The concept of price leadership refers to a situaton where one firm in a market , known as the…
Q: Suppose that you are examining the cigarette market in the US. The supply curve slopes upward, while…
A: When the market as a whole does not allocate resources effectively, it is commonly referred to as a…
Q: a) State the condition for the Pareto optimal provision of a public good. Interpret the condition.…
A: DISCLAIMER “Since you have asked multiple questions, we will solve the first question for you. If…
Q: c. In order to avoid being substituted for capital and position yourself for a long career, what…
A: The efficiency with which factors of production (such as labor, capital, and resources) are used to…
Q: Suppose the movie theater has two types of customers: college students and senior citizens. College…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Imagine you are trying to explain the effect of square footage on home sale prices in the United…
A: The sampling technique where every chosen sample has an equal probability of being chosen is called…
Q: MARKET SEGMENTATION: Type III Discrimination: Price per customer segment A company has…
A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…
Q: Suppose that Samsung’s production costs are the same in both China and India. Also suppose that…
A: International trade refers to the exchange of goods, services, and capital across national borders.…
Q: If a bank has $2,000,000 in deposits with $200,000 in reserves, the reserve ratio for the banking…
A: Reserve Ratio- the part of total customer deposits that a bank is required to hold in the form of…
Q: "Empowering women and giving them equal opportunities in education and the labor market can be a…
A: Labor force participation is the percentage of persons of working age who have either a job or…
Q: how do you find the marginal utilities of the goods with the information provided?
A: No expert do not claim to find both marginal utilities but rather the ratio of marginal utility
Q: In the following graph, shift the supply curve, the demand curve, or both to illustrate the effects…
A:
Q: Money held for emergencies represents the: A. Crisis demand for money. B. Disaster…
A: The transactions demand for holding money occurs when the money is hold by people to transact…
Q: Consider a homogeneous goods industry where two firms operate and the linear demand is given by p(y1…
A: Cost function for leader firm : c1(y1)=cy1 Demand function: D(p) =a-bp Y = a -b p p = ( a - y) /b…
Q: Explain the law of one price and the purchasing power parity (PPP) also state the reasons for for…
A: The law of one price is an economic concept that states that identical goods or services in…
Q: a) State the condition for the Pareto optimal provision of a public good. Interpret the condition.…
A: The Pareto optimal provision of a public good occurs when it is impossible to make any one…
Q: Purchasing power parity hypothesis postulates that nominal exchange rate growth (NER) in a country…
A: NERt=0.19+0.96πt-0.80πt* (0.01) (0.24) (0.10) R12=0.90SSR1=900
Q: Examples of climate mitigation policies include all of the following except. Select one: O carbon…
A: Mitigation involves the stabilization and/or reduction of emissions of greenhouse gas and their…
Q: Owing to increasing, food and transport prices, the Consumer Price Index (CPI) in South Africa…
A: Making economic policy can be challenging because it requires balancing an intricate framework of…
Q: 8. a) Suppose a firm A produces a product q, but also pollution x that affects a second firm B. Firm…
A: Cost function of firm A CA(q,x) = q2 + (x - 4)2 PA = 12 Cost function of firm B CB(r,x) = r2 + xr…
Q: Arif and Aisha agree to meet for a date at a local dance club next week. In their enthusiasm, they…
A: In a mixed strategy Nash equilibrium, each player plays each action with a probability, rather than…
Q: The Greek letter a represents a number that determines how much output responds to unexpected…
A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…
Q: Suppose the price of A is $3, the price of B is $5, the consumer's income is $30, and the consumer's…
A: An income constraint is also called the budget constraint. It represents all the affordable…
Q: he average income of a count nown as a. Real National Income b. Per Capita Income c. Disposable…
A: The average income is the quantity of money earned basically by each person in a particular location…
Q: (b) What are the most noticeable changes in Vietnam’s export pattern between 2000 and 2020? c)…
A: ***Since the student has mentioned to answer only part B and C of the question, only the specified…
Q: b) There are two firms in the economy. Each firm employs positive amounts of capital and labour. The…
A: Technical rate of substitution is the rate at which one unit of input is substituted for the units…
Suppose you work for United Airlines. You have been assigned to conduct a cost-benefit analysis for United Airlines on the question of whether or not United should offer service from Lynchburg Regional Airport to Washington Dulles International Airport (DC-Northern Virginia area). Stopping short of doing any actual calculations, discuss what would be involved in doing this analysis for United. (Even though you don’t have to do the actual calculations, you should be specific as to how you would do the calculations and obtain the necessary inputs.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed in the table are available for purchase. CPU Total Marginal Total Marginal GHz Benefit Benefit Cost Costs 2.0 $1,000 $900 2.5 $1,400 $ 100 3.0 $300 $1,200 3.5 $1,900 $ 1,500 4.0 $2,000 $ 400 The marginal cost of upgrading from a 2.5GHz to 3.0GHz computer is O $400. O $300. $200. O $100.Exercise 3. Your software company recently instituted a highly regarded training program for newly hired software developers. The benefits of this program include not only the benefits to employees, but also the goodwill generated by an increase in your reputation among customers and professional groups. The costs of this training program include all of the labor, space, and consultants necessary. Suppose these benefits and costs are given by B(Q) = 100Q2Q² and C(Q) = 100, where Q represents the amount of hours each software developer should spend in training. (Note that MB = 100 – 4Q, MC = 10, and also that time can be measured in fractions of one hour.) a. What level of Q maximizes the total benefits of your newly introduced training pro- gram? b. What level of Q minimizes the total costs of the program? c. What level of Q maximizes the net benefits? d. What level of training is optimal? Why?The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU Total Marginal Total Marginal GHz Benefit Benefit Cost Costs 2.0 $1,000 $900 2.5 $1,400 $100 $1,200 $1,500 3.0 $300 3.5 $1,900 4.0 $2,000 $400 The total benefit of a 3.0GHZ computer is:
- Imagine that you own one of several popular restaurants in your area. Due to the Covid Pandemic of 2020, all restaurants were forced to close down for two months. You are now allowed to reopen your restaurant to the public. During this time, labor costs were reduced however, overhead such as rent, electricity, etc. was still a large percentage of your total costs. You are facing a dilemma; you are short on funds. What options should you consider? For example, should you raise menu prices to make up for the lost revenue? Should you lower menu prices to attract more customers? Is your customer volume elastic? If you raise prices and the customer volume falls will the increase in prices compensate for the loss of volume? If it does not, is there some way you can make up the revenue shortfall? If you lower menu prices and revenue falls is there some way you can increase your business revenue? Explain your reasoning in terms of demand and elasticity.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.The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU Total Marginal Total |Marginal GHz Benefit Benefit Cost Costs 2.0 $1,000 $900 2.5 $1,400 $100 3.0 $300 $1,200 3.5 $1,900 $1,500 4.0 $2,000 $400 Application of the Cost-Benefit Principle would lead one to purchase a computer.
- You own the video game Grand Theft Auto V. The opportunity cost of playing this game for the second time a)is zero b)is one-half the cost of the game, as this is the second time you have played it. c)is the value of the alternative use of the time you spend playing the game. d) cannot be calculated.Your business produces two products: graphics and writing assessments. However, time is finite and your business must allocate its time between the two products. If your business is producing one service, it cannot produce the other service at the same time. Based on previous experience, you know that your firm can produce 11 graphics and 20 assessments per day. Your firm could also produce 7 graphics and 40 assessments per day. Given these production possibilities, what is the tradeoff between your two services? Make sure you estimate your tradeoff (opportunity cost) in terms of how much you receive for each unit of graphics services that you give up, that is, for 1 unit of graphics given up, how many units of assessments do you gain? Make sure to express your answer to the first decimal point.CAC and Incentives for Truth Telling Before passing regulations on Coke ovens in the steel industry, the EPA estimated that the costs of controlling hazardous air pollutant emissions would be about $4 billion; four years later, that estimate had fallen to between $250 and $400 million. Similarly, projections for benzene emission control were on the order of $350,000 per plant; in actuality, chemical companies found they were able to use substitutes, which “virtually eliminated control costs.”2 We showed in this appendix that industry has an incentive to overstate costs if faced with marketable permit regulation. Does the same incentive hold for CAC regulation, which was used in Applications 15.0 and 15A.0? 1. Assume (1) that the EPA’s initial cost estimates provided earlier were based on industry sources and (2) that the EPA sought to regulate these pollutants at the efficient level.3 Use a diagram to provide a possible explanation for why the cost estimates were so…
- CNG Pipeline Company At the weekly brainstorming session, John Spychalski, president of CNG Pipeline Company (CNG), suggested that they build a new pipeline from Elizabeth, New Jersey, to the Midwest to move refined petroleum products, gasoline, and diesel fuel. Following some discussion, he asked the strategic planning group to consider the idea before the next brown-bag session. Skip Grenoble, vice president for strategic planning, thought that John was not con- sidering the cost and impact of this idea. How could CNG obtain land to build the pipe- line, let alone obtain the necessary capital to finance the project? Then there was the question of the existing refineries located in Ohio, Indiana, and Illinois. Skip knew refined petroleum products were being transported from the Gulf of Mexico refineries via barge and pipeline to the Midwest market areas currently. Skip turned over the project to Evelyn Thomchick, chief strategy analyst, to develop a preliminary analysis of the…PLEASE ANSWER D Your software company recently instituted a highly regarded training program for newly hired software developers. The benefits of this program include not only the benefits to employees, but also the goodwill generated by an increase in your reputationamong customers and professional groups. The costs of this training program include all of the labor, space, and consultants necessary. Suppose these benefits and costs are given by B(Q) = 100Q − 2Q2 and C(Q) = 10Q, where Q represents the amount of hours each software developer should spend in training. (Note that MB = 100 − 4Q, MC = 10, and also that time can be measured in fractions of one hour.) a. What level of Q maximizes the total benefits of your newly introduced training program?b. What level of Q minimizes the total costs of the program?c. What level of Q maximizes the net benefits?d. What level of training is optimal? Why?Daniel Mathews a footballer who is based in Sweden received a fine of $2 500 and a two-match suspension for use of performance-enhancing drugs. Daniel receives a match fee of $5 000 per match from the Sweden Footballers Board, plus additional appearance money of $10 000 per match from Adidas. He also pays $500 per match for comprehensive insurance against injury. In opportunity cost terms, the cost of this incident for Daniel Mathews is: a) $17 500 b) $14 000 c) $31 500 d) $14 000.