Answer the following questions about the model of the firm. (a) What is the fi rm’s primary motivation? Under what constraint does the firm try
September 3, 2020
Choose one element of an archetypal low-cost-carrier business modelfrom the list below.Explain how it reduces cost compared with a large…
September 3, 2020

In order to translate the distance traveled into an estimate of the cost visitors faced in using the park, the analyst made the following assumptions.  First, the average operating cost of vehicles is $0.52 per mile.  Second, the opportunity cost to adults of travel time is 40 percent of their wage rate; it is zero for children.  Fourth, adult visitors have the average county wage rate of $10 per hour.

a. (14 points) Using the preceding information, calculate the travel cost per person from each zone.

b. (6 points)Calculate the value of the national marine park for each zone and the overall value for the amenity (the annual welfare loss to tourists when the national park is closed).

KM
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