=+d. Now suppose that the government begins to charge a per-acre rental price q for use of

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=+d. Now suppose that the government begins to charge a per-acre rental price q for use of land that is assigned to your company, but an oil company that is assigned L acres of land only has the option of renting all L acres or none at all. Given that it takes time to relocate oil drilling equipment, you cannot adjust to this change in the short run. Will you change how much oil you produce?

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