A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain.
Number of Crossings,
Price per Crossing in Thousands
The following table shows the company’s anticipated demand over the lifetime of the bridge:
a. If the company were to build the bridge, what would be its profit-maximizing price? Would that be the efficient level of output? Why or why not?
b. If the company is interested in maximizing profit, should it build the bridge? What would be its profit or loss?
c. If the government were to build the bridge, what price should it charge?
d. Should the government build the bridge? Explain
CLASS TAKE-HOME ASSIGNMENT Department of EconomicsEcon 3870V Instructor: COVERAGE: Chs 4, 5, and pp 188-200 of Ch 6 Directions: Please do each question below The quest...Mar 23 2020
Schaefer (2015) discussed the conflict, functionalist, and labeling theoretical perspectives. Summarize each of these perspectives and provide an example for each perspec...Feb 01 2020
36.0 Omega resistor and an 18.0 omega resistor are connected in series across a 15.0 V battert. What is the voltage across a) the 36.0 omega resistor and b) the 18.0 resi...Mar 25 2020
Construct the total cost schedule using data below for a firm operating in the short-run.Total Output (Q)Total fixed cost (TFC)Total variable cost (TVC)Total cost (TC)Mar...May 06 2021
Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is Tc = 0.30. a. A $1,700, on...Aug 24 2020
Please describe public goods briefly and talk about why their provision is problematicJun 04 2020
Time for a personal question: do you like your job? Think about your job and what parts you enjoy and what you dislike. Look at the jobs of others and think about what th...May 20 2020
Mobile Banking Usage in India based on Daily, Weekly, Monthly, Quarterly Basis and Never. Most of the people are using the mobile banking facility on the weekly and month...Jun 14 2020
Describe and critique the different psychological approaches to explaining criminalityAug 09 2020
Apart from real options,discuss3 qualitative factors that the company should considerwhenmaking its decision onaccepting the new project.May 28 2018