Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8 -0.4q.marginal extraction cost = $2.r = 20%. The available supply is 20 units. Determine the allocation of outputs across the two periods that maximizes the present value of the net benefits for the use of the resources. Draw

Suppose the MWTP in periods 1 (now) and 2 (one year from now) is given by P = 8 -0.4q.marginal extraction cost = $2.r = 20%. The available supply is 20 units. Determine the allocation of outputs across the two periods that maximizes the present value of the net benefits for the use of the resources. Draw

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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