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Revised Railway Operations Assignment

Content type
User Generated
Subject
Economics
Type
Homework
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1
Assignment
Railway Operations Assignment
Name
Institute
Instructor
Submitted On

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2
Assignment
Daily
Round
Trips
Total
Cost
Marginal
Cost
Total
Revenue
Marginal
Revenue
Marginal Crop
destruction
1
$50
$50
$100
$100
50
2
$100
$50
$180
$80
50
3
$150
$50
$240
$60
50
4
$200
$50
$280
$40
50
1.
a.
Assuming that transaction costs are high enough to prevent bargaining between the
railway company and the farmers, and that the railway has no legal liability for the crops
it destroys, so railway can schedule up to 4 or even any number of trips between two
cities. It will not buy spark reduction equipment since there is no liability for the crops it
destroys.
b.
The market value of the crops grown on land within range of sparks (if there were no
fires) was $130 per year. The cost of raising crops in the acreage within range of the
sparks was $100 per year in original for farmers. It is costing 30$ per acreage profit for
each area that is within range of sparks.
2.
a.

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Assignment 1 Railway Operations Assignment Name Institute Instructor Submitted On Assignment 2 Daily Round Trips Total Cost Marginal Cost Total Revenue Marginal Revenue Total Crop destruction from trains 1 $50 $50 $100 $100 $20 2 $100 $50 $180 $80 $40 3 $150 $50 $240 $60 $55 4 $200 $50 $280 $40 $60 Marginal Crop destruction 50 50 50 50 1. a. Assuming that transaction costs are high enough to prevent bargaining between the railway company and the farmers, and that the railway has no legal liability for the crops it destroys, so railway can schedule up to 4 or even any number of trips between two cities. It will not buy spark reduction equipment since there is no liability for the crops it destroys. b. The market value of the crops grown on land within range of sparks (if there were no fires) was $130 per year. The cost of raising crops in the acreage within range of the sparks was $100 per year in original for farmers. It is costing 30$ per acreage profit for each area that is within range of sparks. 2. a. Assignment 3 Assuming that transaction costs are high enough to prevent bargaining between the railway company and the farmers, and that the railway is given the legal liability for the crops it destroys to compensate farmers, so railway can schedule up to 4 or even any number of trips between two cities. It will definitely buy spark reduction equipment since there is legal liability for the crops it destroys. b. The market value of ...
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