TAILIEUCHUNG - Consumer and Producer Surplus in Benefit-Cost Analysis

The market prices of project inputs or outputs will NOT change if: - the inputs or outputs are TRADED ie. price is determined in world markets) - the project is SMALL relative to the size of the economy in which is undertaken | Consumer and Producer Surplus in Benefit-Cost Analysis (Campbell & Brown Chapter 7) Harry Campbell & Richard Brown School of Economics UQ, St. Lucia 2003 BENEFIT-COST ANALYSIS financial and economic appraisal using spreadsheets The market prices of project inputs or outputs will NOT change if: - the inputs or outputs are TRADED ie. price is determined in world markets) - the project is SMALL relative to the size of the economy in which is undertaken Examples of project outputs or inputs whose prices might change: - output: a bridge - price of trips across a river - input: wage of skilled labour in a local market eg. ICP case study (, ) Suppose the market price of project output is predicted to fall from P0 to P1 as a result of the increase in quantity supplied from Q0 to Q1 (as in Figure ). How do we value the additional output (Q1 - Q0) in a social benefit-cost analysis? Project Analysis: use P1 Private Analysis: use P1 Efficiency Analysis: use (P0+P1)/2 Referent .

• Quỹ đầu tư
• Cost Analysis
• project risk
• project risk analysis
• evaluation of investment projects
• corporate finance
• investment
• Cost Effectiveness analysis
• Cost Benefit Analysis
• Theoretical view of Cost Effectiveness Analysis
• CBA applicability for business
• Cost effectiveness and cost benefit studies
• Management control systems
• Cost volume profit analysis
• Cost accounting
• Fundamentals of cost accounting
• Cost management systems
• Profit variance analysis
• Variance analysis
• Decision making
• Cost concepts and behavior
• Cost estimation
• Fundamentals of product
• Cost versus expenses
• Cost management
• Lecture Accounting
• What the numbers mean
• Cost analysis for control
• Performance reporting
• Standard costs
• Cost analysis for planning
• Joint cost allocation