F $30 and $25.70 in the first and second periods, espectively. Assume the rate of return on investment is 5 percent. The smallest possible intergeneration transfe hat will make the efficient resource allocation ustainable is: -uestion 16Select one:
F $30 and $25.70 in the first and second periods, espectively. Assume the rate of return on investment is 5 percent. The smallest possible intergeneration transfe hat will make the efficient resource allocation ustainable is: -uestion 16Select one:
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Consider a two-period resource allocation model where
the efficient allocation implies undiscounted total surplus
of $30 and $25.70 in the first and second periods,
respectively. Assume the rate of return on investment is
15 percent. The smallest possible intergeneration transfer
that will make the efficient resource allocation
sustainable is:
Question 16Select one:
a.
$4.30.
b.
$2.30.
C.
$2.15.
d.
$2.
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