Suppose there are only two periods: period 1 and period 2. You own an oil drilling well where the marginal cost of extracting a barrel of oil is given as $2 per barrel. The market demand line for oil is given as:

P = 8 - 0.4q.

P is price of oil per barrel and q is quantity extracted. You face a discount rate of 5%.

Scenario 1: Oil is unlimited

Scenario 2: Oil quantity is limited to 20 barrels.

In scenario 1, you will extract _______ barrels of oil in period 1.

In scenario 1, you will extract _______ barrels of oil in period 1.

In scenario 1, you will sell each barrel of oil for $_______ in period 2.

In scenario 2, you will extract ______ barrels of oil in period 1.

In scenario 2, you will extract ______ barrels of oil in period 1.

In scenario 2, you will sell each barrel of oil for $_______ in period 2.

In scenario 2, marginal user cost in period 1 is $______.

In scenario 1, marginal user cost in period 1 is $______.