V3

Suppose that oil (a depleteable resource) will be be consumed over two time periods. The demand for oil is given by: Opt= 140-10P,. The interest rate is 80% and there are only 100 units of oil in total. The marginal extraction cost of oil is $2. Determine the price in period 1 (the future) if 40 units of oil are consumed in period O (the present). (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer: CheckSuppose that oil (a depleteable resource) will be be consumed over two time periods. The demand for oil is given by: Qot= 280-7P,. The interest rate is 60% and there are only 100 units of oil in total. The marginal extraction cost of oil is $5. Determine the marginal user cost (lambda) in period 1 (the future) if 40 units of oil are consumed in period 0 (the present). (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer:Suppose that oil (a depleteable resource) will be be consumed over two time periods. The demand for oil is given by: Qot= 96-2P,. The interest rate is 80% and there are only 90 units of oil in total. The marginal extraction cost of oil is $8. Determine the optimal quantity of oil to consume in period 0 (today). (Round to the nearest two decimal places if necessary.) Answer: Check