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 |
Answer option 3) 101.19
Q= 150-P+2*50
Q= 250-P
P= 250-Q
MR = 250-2*Q
so at eqm extraction rule of monopoly
250-2Q1 = (250-Q2)/(1+r)
& From resource constraint : Q1+Q2= 200
Q2= 200-Q1
so,250-2Q1 = (250-200+Q1)/1.1
solving Q1*= 101.19
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 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
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