ndicate whether you think the statement is true or false and explain why. 15. The discounted rate is usually positive. 16. When constant marginal cost > 0, marginal net benefit (P-MC) increases at the rate of interest. 17. Hotelling’s rule states that the dynamically efficient allocation occurs when the present value of the marginal net benefit for the last unit produced is equal across time periods.
indicate whether you think the statement is true or false and
explain why.
15. The discounted rate is usually positive.
16. When constant marginal cost > 0, marginal net benefit (P-MC) increases at the rate of
interest.
17. Hotelling’s rule states that the dynamically efficient allocation occurs when the present
value of the marginal net benefit for the last unit produced is equal across time periods.
18. Monopolist over-converse resources from a dynamic efficiency perspective.
19. When the growth rate in demand exceeds the discount rate, the efficient outcome in a
competitive industry will result in a larger amount of oil available for the future period than
the current period.
20. Biofuels are a back-stop technology for oil and would cause more present production of
oil
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