suppose a market demand for a resource is p=200-4Q and supply is p=80+2Q 1)what's the equation...

Question

Question

suppose a market demand for a resource is p=200-4Q and supply is p=80+2Q

1)what's the equation for marginal net benefit curve?

2)if we consider 2 time periods Q0 and Q1, r=10%, and total endowment of resource is 30 units, how much resource would be extracted in both periods?

(I solved this by making PVMNB0 = PVMNB1 and get answer of Q0=15.24 Q1=14.76 is it correct?)

3)what would be the price of resource in t0? What is price in t1?

business economics

Answer 1

Answer #1

Answer 2

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