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Engineering, 07.11.2019 07:31 louiecampos

:using a 2 period model (assumptions: p=10-0.5q, mec=3, r=10%, 20 units of the resource available) answer the following questions: a. provide an expression for the marginal net benefit of extraction of the resource b. what is the expression for inter-temporal optimality condition? explain the intuition of this condition in plain words. c. derive the optimal quantity allocation across time periods (q1 * , q2 * ) d. derive the optimal resource prices that yield this efficient allocation (p1 * , p2 * ) e. what is the marginal user cost in both time periods (muc1 * , muc2 * ) f. provide an interpretation of the ratio of muc2 * and muc1

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