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Suppose there is a depletable resource that has a stock-size of 28. The static Marginal Net Benefit in each period is 60 - 1.89. The
Suppose there is a depletable resource that has a stock-size of 28. The static Marginal Net Benefit in each period is 60 - 1.89. The discount rate is 20% (r=0.2). The dynamic, efficient solution is for units to be extracted in period 1 and units to be extracted in period 2
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