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Demand function for the depleted resources

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Reference no: EM132405943

Demand function for the depleted resources was p = 8-0.5q and the margin Extraction cost was $2

(a) If 15 units are to be allocated between two periods, in a dynamic efficient allocation how much would be allocated to the first period and how much to the second period when the discount rate is zero?

(b) What would be the efficient price in the two-period model?

(c) What would be the marginal user cost in each period?

Reference no: EM132405943

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