Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 16, Problem 1P
(a):
To determine
Benefit and cost.
(a):
Expert Solution
Explanation of Solution
User’s benefits are prevention from the highway corrosion, rust on vehicle, corrosion to utility lines and damages to water supplies and damages to vegetation and soil surrounding areas.
The sponsor’s costs are paying a higher tax and unknown environmental damages that causes due to the usage of CMA.
(b):
To determine
Salt damages.
(b):
Expert Solution
Explanation of Solution
The damage is calculated by following the given procedure. The state gives exclusive rights to the CMA for a selected area and road salt for another area tor a particular period of time. After that particular time period, It is evaluated the vegetation yield, road salt yield and compared both the result. The difference int eh value is quantified in terms of monetary value.
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Given the supply - demand function of printers in Vietnam as follows:Sx = -20000 + 250PDx = 160000-350PKnowing that Vietnam is considered a small country, the price of a printer on the world market is $120/piece.a. If the Government of Vietnam levies an import tax of 25% on this item, calculate the loss to domestic consumers. How much is the import tax revenue from the Vietnamese government's printer products in this case?b. Due to the commitment to integration, the Government of Vietnam applies an import tax rate of 12.5% for printers, calculate the change in the import tax revenue of the Government of Vietnam.c. To ensure that there are no more imports, what is the minimum tax rate that the Vietnamese government should set?
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The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and is used by an average of 588 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $0.88. The marketing department\'s studies indicate this price increase would reduce usage to 337 riders per day. Calculate the price elasticity of demand for bus tickets to determine if the bus company should increase price or decrease price to increase revenues.
Chapter 16 Solutions
Contemporary Engineering Economics (6th Edition)
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