Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Computer Engineering Expert

Riditna Paper withdraws river water for use in its paper mill, and returns it, along with waste effluent, back into the river. (Effluent is a co-product of Riditna's paper, such that production of each ream of paper generates a specific amount of waste.) 

Two kilometers downstream from the paper mill, Maissahger Brewery produces beer using water from the river.

Riditna Paper receives $336 for each reem of paper produced, and its production cost rises non-linearly with output. Riditna Paper's (weekly) profit function is πR(R)=336R-6R2  where "R" represents output of paper in reams.

The effluent discharged by Riditna's paper mill increases the costs borne by Maissahger Brewery, as the water must be purified before it can be used in the brewing process. The cost of purification can be represented as a quadratic function of the "filth" of the river water: CPurify = 2R2 (this is a function of Riditna's output, since the greater the amount of paper produced, the greater the amount of effluent in the river).

Maissahger receives $192 for each cubic meter "keg" of beer it produces, and its own production cost, net of purification cost, is a quadradic function of the amount of beer produced. 

The (weekly) profit function of Maissahger Brewery is πM(K||R)=192K-4K2-2R2 where "K" represents beer output in cubic-meter kegs, and "R" represents quantity of paper produced upstream by Riditna Paper. 

As Riditna Paper was located on the river before the brewery, it is judged by the Board of Directors of Maissahger Brewery to have prior claim on the river. Norm Christensen, one of the younger directors, proposes paying Riditna Paper a specific sum each period in exchange for reducing its output to the socially-optimal amount. Another director, Otto Postinger, agrees, but is adamant that the payment to Riditna not be "overly generous, we pay enough to encourage them to make the change..but we're not paying a king's ransom."

Assume Riditna Paper is amenable to negotiation. Of the following five amounts, what is the SMALLEST payment the paper firm would accept as compensation for altering its output to the sociallly-optimal quantity?

Computer Engineering, Engineering

  • Category:- Computer Engineering
  • Reference No.:- M93136303
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Computer Engineering

The interest rate on one-year treasury bonds is 1 the rate

The interest rate on one-year treasury bonds is 1%, the rate on two-year treasury bonds is 0.9%, and the rate on three-year treasury bonds is 0.8%. Using the expectations theory, compute the expected one-year interest ra ...

Would you help me by giving me some helpful tips about how

Would you help me by giving me some helpful tips about how to study basic C programming in days?

It is said the best icons are more like traffic signs than

It is said "the best icons are more like traffic signs than graphic illustrations" providing a quick indication of the task they represent. Take a look at the Ribbon and tell us how well the graphic on each of the Ribbon ...

Discuss why a financial services organization would benefit

Discuss why a financial services organization would benefit from using one framework over another (COSO, COBIT,) -- choose a framework or frameworks that in your opinion would be most ideally suited for such an organizat ...

Strings in cstrings manipulationwrite one main code with

Strings in C++ Strings manipulation Write one main code with the following functions. Toggle Write a function called toggle() that accepts a string, and an integer. The function checks whether the character at the positi ...

Current system analysis and modelling assignment 1

Current System Analysis and Modelling Assignment 1 - Assignment overview - This assignment aims to produce a requirements document that captures the functional requirements for an information system that supports the cur ...

A national report indicates that the mean and standard

A national report indicates that the mean and standard deviation of the ACT scores of incoming freshman at American public universities are 24.6 and 6.2, respectively. A sample of 30 incoming freshmen at a small, suburba ...

Discuss the importance of using an access control model in

Discuss the importance of using an access control model in determining how employees in an organization should gain access to resources.

Research web server vulnerabilities by choosing a site and

Research web server vulnerabilities by choosing a site and determining what kind of platform it is running on. Do not scan the server, you can use a site such as Netcraft to determine what the website is running. See if ...

Assignment week 5 bugs vs feature requeststhere is no such

Assignment: Week 5 Bugs vs. Feature Requests There is no such thing as a bug-free IT project. Because bugs are a fact of IT project life, IT project managers must articulate a process for identifying, tracking, and handl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As