Ask Question
BusinessBusiness
19 November, 06:24

A company mines 360,000 tons of coal per year in a rural county. The coal is worth $65 per ton. The average price for a 2,000-square-foot house with three bedrooms more than 20 km away from the mining site in this county is $220,000. The average price for a similar, 2,000-square-foot house with three bedrooms within 4 km of the mine is 8 percent lower. Using comparative statics, what is the effect of mining on home prices in this county?

+4
Answers (1)
  1. 19 November, 06:34
    0
    -$17,600

    Explanation:

    Comparative statistics measure two different economic outputs based on how an exogenous (external) factor affects them. In this case it measures the price of a house far away from the mine and a house close to the mine.

    The house far away costs $220,000, while the nearby house costs $202,400 (8% less). So the effect of the mine on the house prices is - $17,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company mines 360,000 tons of coal per year in a rural county. The coal is worth $65 per ton. The average price for a 2,000-square-foot ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
CDB stock is currently priced at $69. The company will pay a dividend of $5.05 next year and investors require a return of 11.4 percent on similar stocks. What is the dividend growth rate on this stock
Answers (1)
On the work sheet, the cash balance on the adjusted trial balance will be carried over to the: Balance Sheet Debit column, Balance Sheet Credit column. Income Statement Debit column, or Income Statement Credit column?
Answers (1)
Your company currently processes its payroll internally but is considering the use of an external accounting firm. You are in charge of determining whether your company should proceed with this plan. What kind of report would you most likely write?
Answers (1)
The Ramirez Company's last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%.
Answers (1)
Harry recently purchased a new store-brand laundry detergent and was impressed by the product. He has decided that he is going to buy another box of the same detergent as soon as he runs out of the one he's using.
Answers (1)
New Questions in Business
Maria goes to a concert after her mother asked her not to go. The ticket price was $100, and Maria's mom found out and now doesn't trust her. What is the opportunity cost of Maria's choice to go to the concert?
Answers (1)
On January 1, 2021, Poplar Fabricators Corporation agreed to grant its employees two weeks of vacation each year, with the stipulation that vacations earned each year can be taken the following year.
Answers (1)
Beth has just signed a contract to work for a bank. A clause in the contract says that before she begins work, she must pass a drug test and should drug use be discovered, the contract becomes void. This clause would be a
Answers (1)
What is the type of loan obtained through credit card with extremely high rates of interest?
Answers (1)
This is a function of money in which any item - such as currency - that is widely accepted in the exchange of other goods or services.
Answers (1)
Home » Business » A company mines 360,000 tons of coal per year in a rural county. The coal is worth $65 per ton. The average price for a 2,000-square-foot house with three bedrooms more than 20 km away from the mining site in this county is $220,000.
Sign Up Forgot Password?