Let's assume you live 100 miles from the beach and it takes you two hours to...
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Let's assume you live 100 miles from the beach and it takes you two hours to drive there from home. Your cost per mile of driving is $0.25 per mile and your opportunity cost of time is $10 per hour. There is no entrance fee to access the beach. The government invests in a beach nourishment project which doubles the width of the beach. Before the beach nourishment policy, your demand for trips was: D: Q = 100-P After the beach nourishment policy, your demand for trips is: D: Q = 110- P Using the travel cost method, what would you be willing to pay for the beach nourishment policy? Answer: Let's assume you live 100 miles from the beach and it takes you two hours to drive there from home. Your cost per mile of driving is $0.25 per mile and your opportunity cost of time is $10 per hour. There is no entrance fee to access the beach. The government invests in a beach nourishment project which doubles the width of the beach. Before the beach nourishment policy, your demand for trips was: D: Q = 100-P After the beach nourishment policy, your demand for trips is: D: Q = 110- P Using the travel cost method, what would you be willing to pay for the beach nourishment policy? Answer:
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Answer i The total driving cost of reaching the beach is 100 ... View the full answer
Related Book For
An Introduction to Management Science Quantitative Approach to Decision Making
ISBN: 978-1337406529
15th edition
Authors: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Posted Date:
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