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![Page No P=150-Q, Mc=8 , 8=15% 9+96=75 at dynamically efficient cqma Present discount value PDU PV [MN Bo] = PU EM MB ]] MNB M](http://img.homeworklib.com/questions/8638f1a0-78b5-11ea-895d-ab972f1d0610.png?x-oss-process=image/resize,w_560)
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5. Assume that demand for ore is given by P= 150-Q, and supply by P=8, discount...
Assume we have a fixed supply of a depletable resource to allocate between two periods. Also...
Assume we have a fixed supply of a depletable resource to allocate between two periods. Also assume that the demand function is the same in each of the two periods, given by the formula P = 4 – 0.2q, and the marginal cost of supplying the resource is constant at $1 per unit. Now, assume the available supply of the resource q is 10 units, and the discount rate is 10%. What is the dynamically efficient allocation of this resource?...
1. Consider a two-period model similar to the one discussed in the class. Assume that the...
1. Consider a two-period model similar to the one discussed in the class. Assume that the inverse demand equations for a particular depletable resource (e.g., stock of oil) differs across the two periods, with MB. = 600 - 90 MB = 800 - 91 Where, 9. denotes the amount of oil consumed in period 0 and q, denotes the amount consumed in period 1. The higher demand for oil in period 1 might result, for example, from an increased population....
1. Assume the following two equations and the discount rate for the extraction of a natural...
1. Assume the following two equations and the discount rate for the extraction of a natural resource: A) P= 18 -0.75 Q for Marginal Willingness to Pay B) P= 3 for a constant Marginal Cost C) Discount Rate = 6% Solve for the following in a two time period setting: 1) Find and label the equilibrium when there is no limit on Q. 2) State the assumptions needed to solve the optimal extraction rate of the resource in our setting....
A nonrenewable resource stock of 200 units Two periods Demand in the first period (period 0)...
A nonrenewable resource stock of 200 units Two periods Demand in the first period (period 0) is p 0 =300-q 0 Demand in the second period (period 1) is p 1 =400-2q The marginal extraction cost is zero. Competitive industry, profit maximizing firms 1 a. Draw the 2-period graph for this case. On your graph, label the values of all vertical intercepts for the two demand curves (1 pt.) b. State the value of the quantity that would be extracted...
Let demand be given by Q = 150 - P + 2Y. This is the same...
Let demand be given by Q = 150 - P + 2Y. This is the same for all problems of this type. Let r = 10%. Let Y = 50 in the present but Y = 100 in the future. Let MC = 0. Let reserves = 200. Consider the basic two-period model. What is consumption of the resource in the present? 48.32 55.23 62.44 70.12 none of the above Let demand be given by Q = 150 - P...
Let demand be given by Q = 150 - P + 2Y. This is the same...
Let demand be given by Q = 150 - P + 2Y. This is the same for all problems of this type. Let r = 10%. Let Y = 50 across both periods. Let MC = 0. Let reserves = 200. Consider the basic two-period model. What is consumption of the resource in the present IF THE OWNER OF THE RESOURCE IS A MONOPOLIST? 94.29 98.81 101.19 105.71 none of the above
Let demand be given by Q = 150 - P + 2Y. This is the same...
Let demand be given by Q = 150 - P + 2Y. This is the same for all problems of this type. Let r = 10%. Let Y = 50 across both periods. Let MC = 0. Let reserves = 200. Consider the basic two-period model. What is consumption of the resource in the present IF THE OWNER OF THE RESOURCE IS A MONOPOLIST? 94.29 98.81 101.19 105.71 none of the above
Let demand be given by Q = 150 - P + 2Y. This is the same...
Let demand be given by Q = 150 - P + 2Y. This is the same for all problems of this type. Let r = 10%. Let Y = 50 across both periods. Let MC = 0. Let reserves = 200. Consider the basic two-period model. What is consumption of the resource in the present IF THE OWNER OF THE RESOURCE IS A MONOPOLIST? 94.29 98.81 101.19 105.71 none of the above
Let demand be given by Q = 150 - P + 2Y. This is the same...
Let demand be given by Q = 150 - P + 2Y. This is the same for all problems of this type. Let r = 10%. Let Y = 50 across both periods. Let MC = 0. Let reserves = 200. Consider the basic two-period model. Assume that r increases from 10% to 20%. What happens to price and quantity in the present? Price and quantity both increase Price increases and quantity decreases Price decreases and quantity increases Price and...
Let demand be given by Q = 150 - P + 2Y. This is the same...
Let demand be given by Q = 150 - P + 2Y. This is the same for all problems of this type. Let r = 10%. Let Y = 50 across both periods. Let MC = 0. Let reserves = 200. Consider the basic two-period model. Assume that r increases from 10% to 20%. What happens to price and quantity in the present? Price and quantity both increase Price increases and quantity decreases Price decreases and quantity increases Price and...
1. Consider a two-period model similar to the one discussed in the class. Assume that the inverse demand equations for a particular depletable resource (e.g., stock of oil) differs across the two periods, with MB. = 600 - 90 MB = 800 - 91 Where, 9. denotes the amount of oil consumed in period 0 and q, denotes the amount consumed in period 1. The higher demand for oil in period 1 might result, for example, from an increased population....
1. Assume the following two equations and the discount rate for the extraction of a natural resource: A) P= 18 -0.75 Q for Marginal Willingness to Pay B) P= 3 for a constant Marginal Cost C) Discount Rate = 6% Solve for the following in a two time period setting: 1) Find and label the equilibrium when there is no limit on Q. 2) State the assumptions needed to solve the optimal extraction rate of the resource in our setting....
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