Find the optimal allocation over two periods

Reference no: EM13692448

a) Suppose P = 100 – q, Cost = 20q, and the resource constraint is Q = 80. Find the optimal allocation over two periods. What is the value of the resource?

b) Suppose I impose a tax of 10$ per unit extracted. What happens to the allocation in (a)?

c) How does a lack of property rights affect the allocation in (a)?

Reference no: EM13692448

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