Consider a finite resource that can be extracted at a constant marginal cost. There is no substitute available for this depletable resource. In this case, what is the efficient allocation of this resource over time? Discuss the effects of resource scarcity on price and quantity of this resource. How would this allocation change if there is a renewable constant cost substitute available? Your answer should include appropriate diagram(s) and written remarks.[5 points] (B).Define the following terms : choke price, switch point and marginal user cost.In determining the optimal use of a depletable resource, what difference does it make if the extraction costs rise with cumulative extraction?[5 points] (C).If government imposes a price ceiling on a depetable resource that has a renewable substitute , how would this policy affect the efficient allocation of this resource? Explain. Your answer should include appropriate diagram(s) and written remarks.[5 points]