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Suppose the quantity of natural gas demanded in the United States 1s follows: 0, =40-1.5P The marginal cost of natural gas from hydraulic fracturing 1s:
Suppose the quantity of natural gas demanded in the United States 1s follows: 0, =40-1.5P The marginal cost of natural gas from hydraulic fracturing 1s: MC,.=1+0,. Let conventional natural gas production have roughly twice the production costs of natural gas from fracking with a marginal cost of: MC,=1+20Q, a) If the market is competitive, what is the equilibrium price and quantity in the market?)
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