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You run an oil company that wants to extract an oil reserve. The total stock of oil in the reserve is 600 barrels. You must
You run an oil company that wants to extract an oil reserve. The total stock of oil in the reserve is 600 barrels. You must sell all of the oil in two time periods, so the quantity extracted will be q1 + (12 = 600. The price per barrel you can sell the oil for is pt = 710 %qt in each period. The cost of extracting a single barrel is not constant, but increases as more oil is extracted in a period, C(qt) = t. If the interest rate is 5%, how much oil will you extract in periods 1 and 2 if you wanted to maximize prots
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