Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 1, Problem 2.5CE

Energy entrepreneur T. Boone Pickens has proposed converting the trucking fleet in the United States to liquefied natural gas (LNG) and using wind power to replace the missing LNG in electric power production. What infrastructure issues do you see that must be resolved before the Pickens plan could be adopted?

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As an energy source, fossil fuels have had an advantage because of their ["low", "high"]  cost and relatively high ["availability", "net energy", "suitability"]  , a measure of available energy after accounting for the energy involved in extraction and production.   This has resulted in approximately ["60", "40", "80", "20"]  percent of the world’s energy currently being provided by fossil fuels.
True or False[explain]  A)The lower the discount rate used in allocating future resources, the more emphasis we place on current consumption over conservation for future generations.  (Your explanation should include the formula for present value using the discount rate.) B)Renewable energy sources are expensive relative to nonrenewable ones, and we do not have the infrastructure available to provide for the world’s energy using sources such as wind, water, and solar power.  This means adoption of renewable energy has been slow and will continue to be slow in the near future.
A large mountain area in Western Norway has very favorable wind conditions and opportunity to establish a wind farm for the production of electric power which can be sold in the European power market. The company Power has previously gained the exclusive right to develop the area for power production. Let x be the number of dmøller set up in the area. The area is used by many people as recreation area, and is close to a major city. Power's profit depends on how many wind turbines set up. Let the profit be given by IP (X) = 100x - 5x 2 Two groups are negatively affected by the wind turbine development, the local population gen and the local tourism industry that sells adventure travel to foreign countries tourists. The value of the local population of the area given by the following function 1 V L (x) = V 0 - 30x - X 2 2 The tourism industry's profit is given by the following function πτ(x) πο- 10x- 1 X 2
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