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Consider a two-period resource allocation problem where the efficient allocation of the resource implies a market price of $3 in the first period. Assume in
Consider a two-period resource allocation problem where the efficient allocation of the resource implies a market price of $3 in the first period. Assume in both periods the constant marginal extraction costs equal $1 and the social discount rate is 5%. The socially efficient undiscounted market price in the second period must be:
Select one:
a.$3.10.
b.$3.15.
c.$3.
d.$2.10.
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