ECNS 202 PRINTOUT
ECNS 202 PRINTOUT
8th Edition
ISBN: 9781337096584
Author: Mankiw
Publisher: CENGAGE L
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Chapter 12, Problem 4CQQ
To determine

Diminishing returns of capital and growth.

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1. The current price for a barrel of oil is $28. Assume the marginal extraction cost per barrel is $8 and the interest rate is 4 percent per year. a. According to the standard Hotelling model for a nonrenewable resource, what is the forecasted price for next year? b. How would your forecast change (qualitatively) if the demand for oil increased before next year?
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Where in the Victoria, BC is the most logging occurring? Include relative and absolute locations
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