4. When handling insects, knowing where the pests are thickest can help save on insecticideusage. But scounting for bugs also comes at a price. Determine the appropriate blendof insect scouting and insecticide to manage your insect issues on the farm. Completethe following worksheet considering the different strategies for soybean production andanswer the accompanying questions. The price of insect scouting is $30 per hour andinsecticide is $6 per quart.StrategyScounting (hours)Insecticide (quarts) Input Substitution Ratio Input Price Ratio1,2004060080300D.120120(a) What economic question/opportunity does this address? What is the appropriatedecision rule for input substitution? What does that rule to seek to achieve (be morespecific than saying "profit maximization")?(b) What is the profit maximizing strategy? What is the cost associated with thatstrategy?(c) Explain how the input price ratio will change if both input prices decrease from theinitial scenario by 10%? How will this impact your strategy choice?

Input substitution ratio is calculated using the formula : Input Substitution Ratio(ISR) = Amount of…

Answered: 4. When handling insects, knowing where…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...

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D. Pollution problem You know the marginal cost of reducing pollution for four factories. Each unit of pollution can be eliminated according to the following marginal costs. A B C D First Unit $65 $15 $30 $10 Second Unit $75 $55 $65 $30 Third Unit $85 $85 $110 $40 Fourth Unit $120 $155 $120 $60 1. The total cost of Firm D eliminating 4 units of pollution 2. Determine the total cost of each firm eliminating one unit of production. 3. The community has decided that the managers of the firms are allowed to produce a total of 4 units of production. Identify the firm(s) that will pollute.
Only typed answer Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $6; Kyle's cost per ton is $10. Assume that the market price of sockeye salmon is $14 per ton. If Kara pays Kyle $5 per ton for his ITQs, and if she then catches her new limit of 4,000 tons, her profit would be?
ANSWER LETTER A As a eco-tourism site, the Kubak crystal caves are renowned for their stalactites and stalagmites.The warden of the caves offers a tour each afternoon at 2pm sharp. The caves can be shown toonly four people per day without disturbing their fragile ecology. Occasionally, however, more thanfour people want to see the caves on the same day. The following schedule lists the people whowanted to see the caves on September 24, 2003, together with their respective times of arrival andreservation prices for taking the tour that day. Customers Arrival Time Reservation price Herman 1:48 P 20 Jon 1:50 14 Kate 1:53 30 Jack 1:56 15 Penny 1:57 40 Fran 1:59 12 Faith 2:00 17 a.) If the tour is “free” and the warden operates on a first-come, first-served basis, what will the total consumer surplus be for the four people who get to go on the tour that day? b.) Suppose the warden solicits volunteers to postpone their tour by offering increasing amounts of cash…
1. Caribbean economies tend to rely heavily on the Tourism sector, offering Sun, Sea andSand as the “tourism product” for which tourists purchase hotel accommodationsto enjoy. Hoteliers offer these services and are therefore major “suppliers” in thismarket.In 2017 however, several natural disasters affected the Caribbean, resulting ineconomic, environmental and human losses. In order to analyze the impact ofthese Natural Disasters on the hotel industry, answer the following questions. a. With the use of an appropriate demand and supply diagram for hotel rooms(accommodation), illustrate and explain how the news of an impending Tropical Stormto the Caribbean region would affect the market price (hotel rates) and quantity tradedof hotel rooms.b. Following the destruction of hotel infrastructure from the passage of the Hurricanes, usean appropriate demand and supply diagram for hotel rooms (accommodations) toillustrate and explain the impact of the Hurricanes on the market price and…
What is the nature product offered by a monoply?
Suppose the A&G Fuel Company wants to build three pipelines that would carry fuels under your city. The pipelines pose risks of groundwater contamination and explosion. For each pipeline the table below shows the marginal benefit to A&G Fuel Company and the marginal cost of expected damages to residents (in millions of dollars). Marginal Cost (added damages) Pipelines Total Profits Marginal Benefit for A&G Fuel Total Damage to Residents Company 1 120 55 2 80 75 3 70 125 a. Fill in the blanks in the table. What is the efficient number of pipelines? b. Suppose that A&G Fuel Company has the right to build the pipelines. What is the range of offers (in millions of dollars) that the residents might make and A&G Fuel Company might accept to eliminate the third pipeline? Between and (Show all the calculations) c. If residents have the right to clean environment, at the level of output selected by A&G Fuel Company, what is the total amount of compensation A&G Fuel Company will provide to the…
5. Write PESTEL Analysis of Taiwan for restaurant business
Assume that you are in the business of building houses in United Kingdom. You have analyzedthe market carefully, and you know that at a price of £120,000, you will sell 800 houses peryear. In addition, you know that at any price above £120,000, no one will buy your housesbecause the government provides equal-quality houses to anyone who wants one at £120,000.You also know that for every £20,000 you lower your price, you will be able to sell an additional200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,you can sell 1,200 houses; and so on.a. Sketch the demand curve that your firm faces.b. Sketch the effective marginal revenue curve that your firm faces.c. If the marginal cost of building a house is £100,000, how many will you build and whatprice will you charge? What if MC = £85,000?
Please no written by hand and no image SEU ELITE - ECON101 Question 8 The table below shows the marginal benefit that Yahya earns from keeping his store open one more hour. Yahya has a marginal cost of $100 per hour. Yahya stays open 8 hours. Hours {:[" Marginal Benefit Per "],[" Hour "]:} 8 180 9 150 10 140 11 120 12 100 13 80 14 50 a) Do you think Yahya's decision to stay open 8 hours is optimal? Why? b) How many hours do you advise Yahya to stay open? Why?
The state of Colorado requires oil and gas companies who use fracking techniques to retune the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefits (in dollars) of this policy. Calculate the marginal cost and the marginal benefit at each quantity (acre) of land restored. See Production. Costs and Industry Structure if you need a refresher on how to calculate marginal costs and benefits. If we apply marginal analysis, what is the optimal amount of land to be restored?
What is the free rider problem?
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?

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