1. To anticipate subsequent chapters where more complicated renewable resource models are introduced, consider a slight modification of the twoperiod depletable resource model. Suppose a biological resource is renewable in the sense that any of it left unextracted after Period 1 will grow at rate k.

Compared to the case where the total amount of a constant-MEC resource is fixed, how would the efficient allocation of this resource over the two periods differ? (Hint: It can be shown that MNB1/MNB2 = (1 + k)>(1 + r), where MNB stands for marginal net benefit.)