2. How could the principle ofenvironmental resources such as the atmosphere andof conchisions about optimal depletion apply or not?resources?KineExercises 5bintergenerational allocation of resources. Suppose a generation is thirty-five vee ofwe are concerned with only two generations.Demand and supply functions for oil in the present generation are given by:Demand: Qd = 200– 5P or P = 40– 0.2Qd%3DSupply: Qs = 5P or P = 0.20s%3D(a) Draw a demand and supply graph showing the equilibrium price and quantityconsumed in this generation in the absence of any consideration of the future. Nowdraw a graph showing the marginal net benefits from consumption in this period at alllevels of consumption up to the equilibrium level. Express the net benefit (benefit minuscost) algebraically.(b) Suppose that the net benefit function is expected to be the same for the nextgeneration. But there is a discount rate (interest rate) of 4 percent per annum, which forthirty-five years works out to (1.04)35, which is approximately equal to 4. Total oilsupply for both generations is limited to 100 units. Calculate the efficiant resources between the two generations and show this graphically. (Set marginal benefitsequal for the two periods, remembering to include the discount rate.)ger ores areporal allocation ohey anticipaekely to realizes will probably risecording to this(c) What is marginal user cost for this efficient allocation? If you include this user costin your original supply and demand graph, what is the new equilibrium? What is thescarcity rent? If the demand curve is the same in the second generation, what will theprice and quantity consumed in that period be?ores are usedEnvironmenntal and Natural Resource Economics: The Basicsperupwill probablyriseallocation(d) How would the answers differ if we used a zero discount rate? What can youconclude from this example about the general problem of allocation of resources overlong periods?aporal5. providinga newwable resoureits price andbe less wellent. Do yourve specifi

Answered: Image /qna-images/answer/c02cb712-0f8d-4b1e-b40d-5dd8dc516c26.jpg

of conclusio Exercises Sb intergenerational allocation of resources. Suppose a generation is thirty-five years, and We can modify the inter-period allocation model to deal with the issue we are concerned with only two generations. Demand and supply functions for oil in the present generation are given by: Demand: Od-200-SP or P = 40-0.2Qd Supply: Qs =5P or P=0.20s (a) Draw a demand and supply graph showing the equilibrium price and quantity consumed in this generation in the absence of any consideration of the future. Now .L.

of conclusio Exercises Sb intergenerational allocation of resources. Suppose a generation is thirty-five years, and We can modify the inter-period allocation model to deal with the issue we are concerned with only two generations. Demand and supply functions for oil in the present generation are given by: Demand: Od-200-SP or P = 40-0.2Qd Supply: Qs =5P or P=0.20s (a) Draw a demand and supply graph showing the equilibrium price and quantity consumed in this generation in the absence of any consideration of the future. Now .L.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2. How could the principle of
environmental resources such as the atmosphere and
of conchisions about optimal depletion apply or not?
resources?
Kine
Exercises 5b
intergenerational allocation of resources. Suppose a generation is thirty-five vee of
we are concerned with only two generations.
Demand and supply functions for oil in the present generation are given by:
Demand: Qd = 200– 5P or P = 40– 0.2Qd
%3D
Supply: Qs = 5P or P = 0.20s
%3D
(a) Draw a demand and supply graph showing the equilibrium price and quantity
consumed in this generation in the absence of any consideration of the future. Now
draw a graph showing the marginal net benefits from consumption in this period at all
levels of consumption up to the equilibrium level. Express the net benefit (benefit minus
cost) algebraically.
(b) Suppose that the net benefit function is expected to be the same for the next
generation. But there is a discount rate (interest rate) of 4 percent per annum, which for
thirty-five years works out to (1.04)35, which is approximately equal to 4. Total oil
supply for both generations is limited to 100 units. Calculate the efficiant

resources between the two generations and show this graphically. (Set marginal benefits
equal for the two periods, remembering to include the discount rate.)
ger ores are
poral allocation o
hey anticipae
kely to realize
s will probably rise
cording to this
(c) What is marginal user cost for this efficient allocation? If you include this user cost
in your original supply and demand graph, what is the new equilibrium? What is the
scarcity rent? If the demand curve is the same in the second generation, what will the
price and quantity consumed in that period be?
ores are used
Environmenntal and Natural Resource Economics: The Basics
per
up
will probably
rise
allocation
(d) How would the answers differ if we used a zero discount rate? What can you
conclude from this example about the general problem of allocation of resources over
long periods?
aporal
5. providing
a new
wable resoure
its price and
be less well
ent. Do you
rve specifi

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Please explain both true and false When a firm's resources are not specialized, its production possibility frontier (PPF) is a straight, downward sloping line. True or False Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.
Compare two versions of the two-period depletable resource model that differ only in the treatment of marginal extraction cost. Assume that in the second version the constant marginal extraction cost is lower in the second period than the first (perhaps due to the anticipated arrival of a new, superior extraction technology). The constant marginal extraction cost is the same in both periods in the first version and is equal to the marginal extraction cost in the first period of the second version. In a dynamic efficient allocation, how would the extraction profile in the second version differ from the first? Would relatively more or less be allocated to the second period in the second version than in the first version? Would the marginal user cost be higher or lower in the second version? Why?C
Plz solve correctly all parts Will definitely upvote
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5
1
Why hasn't the depletion of nonrenewable resources happened as predicted? Do the pricing signals at this time indicate that nonrenewable resources are almost exhausted?
How many points (out of the 6 shown) can be explicitly plotted to form the IS curve given the goods market equilibrium?A goods market equilibrium is shown below: A, B, C, D, E, F 32- A goods market equilibrium is shown below: S₁ (Y= 400) 28- Real Interest Rate, r (%) S2(Y=600) S3 (Y = 800) 226 24- A 20- B C 16- 12- E 4- 0- 0 l(r) F 50 100 150 200 250 300 Desired national saving / desired investment We recommend that you drow out the IS curve before answering
Please give me correct answer and full explanation. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Dynamic efficiency refers to an allocation such that no further shuffling of extraction across periods will increase the sum of the present discounted values of the firm’s stream of future profits. If there are just two periods in the story, explain why the allocation of a scarce exhaustible resource that maximizes the present discounted value of profits across two periods will involve more extraction in the first period and less extraction in the second period, rather than an equal amount in both periods.