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Given the prices and marginal costs of extraction of a mineral resource in period O and 1: Period O Period 1 marginal Quantity of extraction

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Given the prices and marginal costs of extraction of a mineral resource in period O and 1: Period O Period 1 marginal Quantity of extraction price marginal cost (MC) of price extraction cost (MC) of extraction 300 120 20 120 10 400 120 30 120 20 500 120 40 120 30 600 120 50 120 40 700 120 60 120 50 If discount rate, r=25%, demand-2000, and availability (supply) of resources=900, then what will be the allocation of the quantity of extraction between two periods: period O and period 1? 400, 500 Q 300, 600 600, 300 O 500. 400

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