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Question: a small city in indiana has two residents who are...

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SPEA V401 Financial and Cost-Benefit Analysis Spring 2017 Professor Bradley Heim Problem Set #3 Due Thursday, March 30 pal golf course in their city. The marginal benefit of playing a round of golf for the first resident is given by MBn 80-2Q, and the marginal benefit of playing golf for the second resident is given by MB2-30-Q2. The manager at the golf course has set the price of a round of golf at S10 a. How many rounds will the first resident golf? b. What are the first residents total benefits? c. How many rounds will the second resident golf? d. What are the second residents total benefits? e. What are the total benefits associated with the golf course? 2) Two suppliers have been contracted by a government agency to provide a total of 200 hours of training services to help agency employees learn how to use a new computer system. The marginal cost curve off firm 1 is MC1-100+.2Q1, while the marginal cost curve for Firm 2 is MC2 90+.4Q2. There are no fixed costs. Each firm provides 100 hours of training services each week. a. What is the total cost to firm 1 of providing 100 hours of training? b. What is the total cost to firm 2 of providing 100 hours of training? c. What is the marginal cost of training for firm 1 at 100 hours of training? d. What is the marginal cost of training for firm 2 at 100 hours oftraining? MB 300-Q, where MB is the marginal benefit of water, and Q is thousands of gallons of water each period. The marginal cost of providing the water (including treatment, and costs) .5Q. no fixed costs. Suppose that the government utility that provides water service has set the price at $100 per thousand gallons, and supplies 200 thousand gallons. a. What is the total benefit of that amount of water? b. What is the total cost of providing that amount of water? c. What is the net benefit (total benefits minus total costs) ofthat amount of water? d. Are net benefits maximized at 200 thousand gallons? If yes, why? If not, how many gallons should be supplied to maximize net benefits?
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