El Serafys user cost rule. (b) Repeat (a) using an interest rate of 10%. (c) Repeat the

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El Serafy’s user cost rule.

(b) Repeat

(a) using an interest rate of 10%.

(c) Repeat the calculation for a 5% interest rate, but with the world price of oil being £3.00 at the start of the year and £5.00 at the end of the year.

(d) Comment on your results.

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Natural Resource And Environmental Economics

ISBN: 9780321417534

4th Edition

Authors: Roger Perman, Yue Ma, Michael Common, David Maddison, James McGilvray

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