Consider a farmer and a rancher who operate near one another. The farmer grows crops and the
rancher’s herd wanders and tramples the farmer’s crops. If the herd tramples the crops, it causes
$400 per week worth of damage to the farmer. The rancher could put a fence around the herd to
prevent damage to the crops, but the cost for the rancher to build and maintain the fence is $500
per week. The farmer could protect his crops with a fence around the crops at a cost of $300 per
week. Assume no transaction costs.

a. Suppose the farmer has the property rights, meaning the farmer has a legal claim if his
crops are destroyed. What would the rancher do? Would he build a fence around his herd,
would he let his herd wander and trample the crops, or is there something else he could
do?

b. Suppose the rancher has the property rights, meaning the farmer has no legal claim if his
crops are destroyed. What would the farmer do?

Now, for parts c. and d. , imagine the damage from the trampling costs are $200.

c. Suppose the farmer has the property rights. What does the rancher do?
d. Suppose the rancher has the property rights. What does the farmer do?
e. Define the Coase Theorem, and explain how your answers fit the Coase Theorem’s
predictions.

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed.

The actual operating results for August appear below.

Required:

Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

1. A recent news story (not really!) highlighted the near-drowning of a Navy Seal recruit that deliberately hyperventilated before diving into the water. The recruit was practicing an exercise that required them to hold their breath underwater for an extended period of time. The recruit reasoned that hyperventilation prior to the exercise would alter their physiology in a way that would increase the length of time they could hold their breath. Explain the physiological basis of this belief (use the terms hypocapnia and hypercapnia in your answer)

2. The digestive system and respiratory system share some structures, yet others must be kept separate to prevent choking. Describe how substances that are intended to be swallowed may get “misdirected” and lead to choking. Be sure to include all structures involved.

avage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expected to wash 8,400 cars in August and to collect an average of $6.10 per car washed.

The actual operating results for August appear below.

Required:

Compute the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Consider an island nation located near the Bay of Bengal where the natural rate of unemployment is 7%. In 2012, the total population was 18 million with an adult population of 15 million. The major industries are agriculture, textile, and information technology, and although workers prefer full-time jobs, all industries have some combination of full-time and part-time jobs. Each full-time worker produces an average of $40,000 worth of output per year, while each part-time worker produces an average of $22,000 worth of output per year. In 2012, 1 million adults were unemployed while 9 million adults were employed, of which 1 million were underemployed. Over the following three years, beginning with 2013, the government implemented a set of policies that encouraged domestic and foreign direct investment in the major industries and started changes in the nation’s infrastructure, population and productivity. In 2015, the national census bureau determined that 200,000 of the people who were looking for work since 2012, got discouraged at some point and stopped looking for jobs. In addition, among those who were employed in 2012, 100,000 lost their full-time jobs and are still looking for employment, while 100,000 adults were forced to retire from their full-time position and are now working in part-time jobs. In 2015, the national census bureau also determined that the total population increased by 8%. During the 3-year period, the birth rate, the number of children entering the adult population, and the mortality rate, were such that the net change to the population resulted solely from legal migration. Among the migrants, 1.2 million adults entered the labor force and of these, 200,000 adults are still looking for work. Furthermore, among the employed migrants, 700,000 are underemployed.

What are the U – 3 and U – 6 unemployment rates in 2015?

) Randy's Pizza delivers pizzas to dormitories and apartments near a major state university. The company's annual fixed costs are $48,000. The sales price averages $9, and it costs the firm $3 to make and deliver each pizza.

Required:

A. How many pizzas must Randy's sell to break even?

B. How many pizzas must the company sell to earn a target profit of $54,000?

C. If budgeted sales total 9,900 pizzas, how much is the company's safety margin in dollars?

D. Tony's assistant manager, an accounting major, has suggested that the firm should try to increase the contribution margin per pizza. Explain the meaning of "contribution margin" in layman's terms.

A structure constructed near to the water body experiencing an anticipated load of 1.25 x106 N. The load coming on to the foundation do not includes the weight of pile cap. Founding subsoil contains a layer of clay 5.0 m deep from the ground surface followed by some loose soil. As a Geotechnical Engineer, design the most suitable friction pile group considering the following factors: Factor of safety against shear failure = 2.5 Unconfined compressive strength of clay = 0.060 N/ mm2 Radius of individual pile = 200 mm Weight of pile cap = 200000 N

The broader definition of money – M2- includes several components (near-monies), the biggest of which is:

A) Savings deposits, including money market deposit accounts (MMDA)

B) Small (less than $100,000) time deposits

C) Money market mutual funds (MMF)

D) Currency, checkable deposits and Traveler’s checks

Which of the following is a tool the Federal Reserve System can use to regulate the quantity of money?

i.    changing the discount rate

ii.   conducting open market operations

iii.  changing the required reserve ratio

A) i only

B) ii only

C) ii and iii

D) i, ii, and iii

.  The fundamental force that drives trade between nations is:

A) the government.

B) NAFTA.

C) absolute advantage.

D) comparative advantage.

Which of the following is the result of a tariff?

A) Lower domestic prices than those that would prevail without the tariff.

B) A more efficient allocation of resources than would occur without the tariff.

C) Greater domestic production than would occur without the tariff.

D) All of the above.

A small space probe, of mass 240 kg, is launched from a spacecraft near Mars. It travels toward the surface of Mars, where it will land. At a time 20.7 s after it is launched, the probe is at the location 4.30×10-, 8.70×100, 0 m, at at this same time its momentum is 4.40×102, −7.60×10-, 0 kg⋅m/s. At this instant, the net force on the probe due to the gravitational pull of Mars plus the air resistance acting on the probe is −7×10-, −9.2×100, 0 N. Assuming that the net force on the probe is approximately constant over this time interval, what are the momentum and position of the probe 20.9 s after it is launched? Divide the time interval into two time steps, and use the approximation Vavg = Pf / m