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If the extraction firm follows the optimal (surplus-maximizing) extraction path, and if the operative interest rate is 25% (0.25), what is the Marginal Net Benefit

If the extraction firm follows the optimal (surplus-maximizing) extraction path, and if the operative interest rate is 25% (0.25), what is the Marginal Net Benefit (MNB) in the first period (period 0) (this is also called Hotelling Rent or Scarcity Rent)?

A. $0 0 < $120

B. $120 0 < $130

C. $130 0 < $140

D. $140 0 < $150 E. $150 0

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