12.01.2013 Views

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

or<br />

( 5 1) .<br />

1.<br />

Q-14.)4<br />

`("P)EXarg (Q) +GUrn(03<br />

Qix) 14<br />

which states that the slope of the marginal cost curve is<br />

greater in Value than the slope of the marginal cost of<br />

transport curve....<br />

If we require that the firm's transport bill always<br />

be increasing, i. e. 1)(1.450 .40 071 I Q0 + 4T(.40) 7 0<br />

ea IX<br />

then the net marginal revenue curve must always intersect<br />

marginal cost at less than<br />

e a. or a. 08 • 40 .0 ea /re r e.<br />

osAird.". rt.<br />

(1 40" •<br />

If, in addition, we require T u (Q)"? 0, i.e. the curve is<br />

concave upward, then the following possibilities exist<br />

<strong>for</strong> changes in the level of the taper:<br />

. Net MRI (as the result<br />

of taper 1)<br />

Net MR (as the result<br />

2 •<br />

of taper 2)<br />

where taper 2 involves higher transport costs than taper 1.<br />

47

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!