Suppose marginal benefit from a hectare of for a public park (assume it is a pure public good) for two groups of consumers (A and B) is given by: MBa = 10 − Q and MBb = (8 – Q)/2 where Q is the number of hectares of the park. To simplify our analysis, assume that there are only 1 consumer of each type. The marginal cost to provide the park is a constant $5.

a) What is the socially efficient number of hectares for the park?

b) Assume that the consumers each makes a voluntary contribution to a fund which will be used to build the park. The size of the park depends on the amount of money collected. How many hectares will be built in the end? Assume both consumers know the marginal cost and marginal benefit function of each type.

Let’s return to Tallahassee hotel market we considered in Problem Set 1, but now from the perspective of a hotel manager. Consider a hotel which can supply an unlimited number of hotel rooms at the constant marginal cost c = 20 per room per night, so that the hotel’s total cost function is given by C(q) = 20q. Assume that demand for hotel rooms in Tallahassee takes two possible values: on game days, demand is described by the demand curve q = 100−p, while on non-game-days demand is described by the demand curve q = 60 − 2p.

1. First suppose that the hotel acts as a price taker.

(a) What does it mean for the hotel to act as a price taker? What condition determines a price taker’s optimal supply decision?

(b) Assuming the hotel acts as a price taker, what will be the equilibrium price and quantity sold on game days? What about on non-game-days? (Remember, the hotel’s marginal cost is constant!)

(c) Briefly discuss, without solving, how your results in (b) would change if the hotel instead had increasing marginal costs (say for example MC(q) = q rather than MC = 20).

Government is considering building a public park in a small town ìBelleî. The cost of building this park is 120. There are three people in this town, Arnold, Ben, and Carrol. Each personís valuation of the park is 20, 30, and 80 respectively. But, government does not know these valuations.

(a) The government decides whether to build this park by majority voting. If majority supports building the park, then cost will be equally shared. What will be the outcome of majority voting?

(b) Government suggests that the cost of building the park will be financed through the government revenue in other towns. But government will only take this project when the benefit is higher than the cost. Government want survey these three to know the benefit of the park. Do you think this is the right plan to get the benefit of the park? Explain why or why not.

(c) Government suggests another plan. Government will survey these three to get the valuation of the park. If the sum of benefit is greater than the cost, cost will proportionately shared among three according to the reported valuation. For example, the reported valuation is 50, 60, and 70, then each cost share will be 50/(50+60+70), 60/(50+60+70), and 70/(50+60+70). Do you think this is the right plan to get the true valuation? Explain why or why not.

Wildlife Escapes generates average revenue of $6,250 per person on its​ 5-day package tours to wildlife parks in Kenya. The variable costs per person are as​ follows:

Airfare

$1,100

Hotel accommodations

1,950

Meals

900

Ground transportation

600

Park tickets and other costs

700

Total

$5,250

Annual fixed costs total $590,000.

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.3 million. The equipment will be depreciated straight - line over 6 years to a value of zero, but, in fact, it can be sold after 6 years for $549,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year’s forecast sales. The firm estimates production costs equal to $1.60 per trap and believes that the traps can be sold for $6 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 10%.

Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV? (Enter your answer in millions rounded to 4 decimal places.)

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $6.3 million. The equipment will be depreciated straight - line over 6 years to a value of zero, but, in fact, it can be sold after 6 years for $549,000. The firm believes that working capital at each date must be maintained at a level of 10% of next year’s forecast sales. The firm estimates production costs equal to $1.60 per trap and believes that the traps can be sold for $6 each. Sales forecasts are given in the following table. The project will come to an end in 6 years, when the trap becomes technologically obsolete. The firm’s tax bracket is 35%, and the required rate of return on the project is 10%.

Suppose the firm can cut its requirements for working capital in half by using better inventory control systems. By how much will this increase project NPV? (Enter your answer in millions rounded to 4 decimal places.)

Change in NPV?

From the historical data, the firm has determined the following transition matrix:
  

  
For example, if an account is two months overdue at the beginning of a month, there is a 40% chance that at the beginning of next month, the account will not be paid up (and therefore be three months overdue) and a 60% chance that the account will be paid up. It is assumed that after three months, a debt is either collected or written off as a bad debt. Once a debt is paid up or written off as a bad debt, the account is closed, and no further transitions occur.

What is the probability that a new account will eventually be collected?

Design a concrete mixture that has a 28 day compressive strength of 4000 psi and a maximum size aggregate of 0.75 in. The concrete would be placed in a column exposed to freezing and thawing and will be in contact with a soil that has a sulfate content of 0.3%.

Step 1: Assemble information from specifications and local materials

Cement:

Use any type and assume a specific gravity of 3.15

Coarse Aggregate:

Bulk Specific Gravity (BSG) – 2.65

Absorption Capacity – 1.5%

Surface Moisture – 1.0%

Dry-Rodded Unit Weight = 105 lb/ft^3

Fine Aggregate:

Bulk Specific Gravity (BSG) – 2.75

Absorption Capacity – 1.0%

Surface Moisture – 3.0%

Fineness Modulus – 2.7

Step 2: Select Slump

Step 3: Determine the maximum size of the aggregate

Step 4: Estimate the mix water and the air content

Step 5: Choose the water-to-cement ratio

Step 6: Determine the Cement Content

Step 7: Estimate the Coarse Aggregate Content

Step 8: Estimate the Fine Aggregate Content for a cubic yard

Step 9: Adjust for Moisture

Step 10: Summarize batch proportions in a table

This is all one question:

A theater uses the following table/sheet to manage ticket sales, which turned out to be a very bad practice. The manager of theater hires you to design a database to manage the ticket sale information.   

TICKET-SALES (InvoiceNumber, CustomerID, ShowTitle, SeatType, SeatLocation, TicketPrice, CustomerName, CustomerCell, ShowTime, Director_of_Show)

Note: A customer can purchase multiple seats in one order (with one InvoiceNumber). It is also the common sense that the price of a ticket/seat depends on the show, it’s showtime and seat location. Also note this theater may have multiple shows at the same time.  

To do your job, you need to answer the following questions:  

-List al Functional Dependencies

-List Multivalued Dependencies, if there is any.

-What is the key of original table (TICKET-SALES)?

-What normal form this table is in and Why? Give a clear justification/explanation

-How do you normalize it? Show the result of normalization

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night. Assume that room rates are normally distributed with a standard deviation of $55.

a. What is the probability that a hotel room costs $225 or more per night?

b. What is the probability that a hotel room costs less than $140 per night?

c. What is the probability that a hotel room costs between $200 and $300 per night?

d. What is the cost of the 20% most expensive hotel rooms in the New York City?