Demand for copper from the Red Dog mine is steady over time, at p = 1000...

Demand for copper from the Red Dog mine is steady over time, at p = 1000 - q for both this year and next year (where p is the price in dollars per ton and q is the number of tons). Your marginal cost of mining and marketing copper is constant at $100 per ton, and your discount rate is r = 0.05. You can price like a monopolist but your available supply is only S = 600 tons that can be marketed this year and next.

A. Write the two conditions that you would use to solve for the specific quantities 0 q and 1 q that maximize your profits over the two periods. (You don’t actually have to solve for them.)

B. Using the information in part (a), develop an equation that explains how marginal net benefits in year 1 depend on marginal net benefits in year 0.

Expert Solution

Rahul Sunny answered 1 year ago

Suppose that copper is being projected to be extracted from a certain mine at a rate...

Suppose that copper is being projected to be extracted from a certain mine at a rate given by P'(t) = 330e−0.07t where P(t) is measured in tons of copper and t is measured in years. (a) How many tons of copper is projected to be extracted during the second three year period? Give you answer to three decimal places. (b) How many tons of copper is projected to be extracted during the sixth and seventh years? Give you answer to...

Consider copper from 0 degrees Celsius to 1000 degrees Celsius. The density for copper at 0...

Consider copper from 0 degrees Celsius to 1000 degrees Celsius. The density for copper at 0 degrees is 8.92 g/cm^3. Assume the vacancy formation energy is 0.91 eV/atom and that the volume coefficient of thermal expansion is 3 times the the linear coefficient of thermal expansion. 1) Determine the density change between these two temperatures due to the change in the number of vacancies. Thermal expansion coefficient of copper is 9.3 (10-6 in/(in R))*) OR 16.6 (10-6 m/(m K))

Consider the market for soybeans. The market demand is given by the equation P = 1000...

Consider the market for soybeans. The market demand is given by the equation P = 1000 – 2Q, where, P is the price and Q is the quantity. The market supply is given by the equation P = 200 + 2Q. For each of the following questions please show the steps through your final answer and not just your final answer. 1) Plot the supply and demand curves (Hint: start with P = 200, 300, 400, ... 1000 to calculate...

Industry demand is given by: QD = 1000 - P All firms in the industry have...

Industry demand is given by: QD = 1000 - P All firms in the industry have identical and constant marginal and average costs of $50 per unit. If the industry is perfectly competitive, what will industry output be? What will be the equilibrium price? What profit will each firm earn? Now, suppose that there are five firms in the industry and they collude to set the price. What price will they set? What will be the output of each firm?...

The Red Cross honors and recognizesits best volunteers from time to time. One of the...

The Red Cross honors and recognizes its best volunteers from time to time. One of the Red Cross offices has received 12 nominations for the next group of 4 volunteers to be recognized. Seven of these 12 nominated volunteers are females. If Red Cross office decides to randomly select 4 names out of these 12 nominated volunteers, find the probability that of these 4 volunteers exactly 3 are females.

Suppose the inverse demand for physician office visits is P = 1000 - 20Q. Now suppose...

Suppose the inverse demand for physician office visits is P = 1000 - 20Q. Now suppose an insurance policy provides a co-insurance rate of 50%. Graph the old and the new demand functions (with and without health insurance) and mark their intercepts on the Price (vertical) and Quantity (horizontal) axes.

I. Explore the supply and demand conditions for NETFLIX a) Evaluate trends in demand over time...

I. Explore the supply and demand conditions for NETFLIX a) Evaluate trends in demand over time and explain their impact on the industry and the firm. You should consider including annual sales figures for the product Netflix sells. b) Analyze information and data related to the demand and supply for Netflix product(s) to support your recommendation for Netflix's actions. Remember to include a graphical representation of the data and information used in your analysis. III. Examine the price elasticity of...

A biologist is sampling randomly from a population of 1000 birds of which 22-percent are red...

A biologist is sampling randomly from a population of 1000 birds of which 22-percent are red birds, 18-percent are blue birds, 15-percent are yellow birds, and 14-percent are hawks- In statistics What is P(third largest yellow bird | yellow bird) and P (red birds | red birds or blue birds)? Give answer in the form of 0.xx

Joe orders 1000 red widgets from Amazon. The contract specifies that it is a "destination contract."...

Joe orders 1000 red widgets from Amazon. The contract specifies that it is a "destination contract." Amazon ships blure widgets and the boxes are put in Joe's warehouse. Before Joe can inspect them, they are destroyed in a fire. As between Amazon and Joe, who bears the loss? 1. Joe because the widgets had reached the destination 2. Joe because the fire was at his warehouse 3. Amazon because it shipped nonconforming goods 4. The Fire Department because they should...

Over a 18 day period, daily measurements of silver yield from a mine us taken. The...

Over a 18 day period, daily measurements of silver yield from a mine us taken. The company has an original goal of the 60th percentile being more than 50 tons. From the 18 days, 8 days yielded less than 50 tons. No day yielded exactly 50 tons. Test to see if the company’s goal is upheld. (a) State the hypothesis for testing this claim. (b) Explain and show what test statistic you're using and how to get the p-value (c)...

Question