Study Guides (248,519)
Canada (121,605)
Economics (131)
ECON 471 (4)

Econ471_final 2012.pdf

3 Pages
Unlock Document

ECON 471
Ratna Shrestha

2012Final Question 1 Suppose that the demand curve for a nonrenewable resources is PQt10004 Qt and MC of extraction is 40 throughout the twoperiod of extraction period 0 and 1 The total stock of resources is 200 units and market discount rate is 10 throughout the periodsa If the market for this resources is competitive what are the optimal quantities extracted and prices in each periodb If the miner is the only supplier in this industry do the results in part a changeCalculating new scarcity rent and interpret your results Use the Hotellings r directly without setting up Lagrangian c Now suppose that discount rate increase to 20 draw a diagram to show how this increase in social discount rate will affect monopoly quantities of extractiond Now suppose that the marginal extraction cost in period 1 reduces as the improvement o
More Less

Related notes for ECON 471

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.