After geological tests indicated the presence of a small pool of light crude on Renamero Island, General Oil negotiated a two-year extraction license with the country's government. According to the geologists, there are 50,000 (42 US gallon) barrels of (recoverable) oil in the pool. General's estimates of the cost of extraction and transport of the oil in each period (period 't') as C(Qt) =25Q4 + 0.0015x(Q+)2 where: Qt represents the number of (42 US gallon) barrels of oil extracted/sold in period 't' (t = 0, 1) Because it has a secure, two-period lease, General's planners discount future returns using a relatively low annual interest rate of 5%. If the price of a barrel of oil is $100, what type of limit, if any, will General encounter when extracting the oil on Renamero Island? 1) Ricardian Limit is reached, Malthusian Limit is not reached 2) Both Malthusian Limit and Ricardian Limit are reached 3) Malthusian Limit is reached, Ricardian Limit is not reached 4) Neither the Malthusian Limit nor the Ricardian Limit is reached After geological tests indicated the presence of a small pool of light crude on Renamero Island, General Oil negotiated a two-year extraction license with the country's government. According to the geologists, there are 50,000 (42 US gallon) barrels of (recoverable) oil in the pool. General's estimates of the cost of extraction and transport of the oil in each period (period 't') as C(Qt) =25Q4 + 0.0015x(Q+)2 where: Qt represents the number of (42 US gallon) barrels of oil extracted/sold in period 't' (t = 0, 1) Because it has a secure, two-period lease, General's planners discount future returns using a relatively low annual interest rate of 5%. If the price of a barrel of oil is $100, what type of limit, if any, will General encounter when extracting the oil on Renamero Island? 1) Ricardian Limit is reached, Malthusian Limit is not reached 2) Both Malthusian Limit and Ricardian Limit are reached 3) Malthusian Limit is reached, Ricardian Limit is not reached 4) Neither the Malthusian Limit nor the Ricardian Limit is reached