Assume that we have a fixed supply of a depletable resource to allocate between two periods. Assume further that the demand function is constant in the two periods, the marginal willingness to pay is given by the formula P = 11 - 0.4q, and marginal cost is constant at $4 per unit. The total supply is 2 units. What percent of the total should be consumed during the first period if the discount rate is 3%? Static and dynamic efficiency

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