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nakungth nakungth
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6 years ago
The demand for xenite ore is fixed over time and is given as:
   q = 40 - P
where q is the number to tons of ore produced and P is the price per ton of xenite ore.  The marginal extraction cost is $15 per ton and is also constant over time.  The total quantity of the resource currently known to exist is 53.29 tons.  The interest rate is 10 percent.  Using the Hotelling rule for an exhaustible resource, complete the following table.

      Time Period   Price   Marginal Cost   q   Cumulative   
      Production   
   Today   15
   1 Year   15
   2 Years   15
   3 Years   15
   4 Years   15
   5 Years   15
   6 Years   15
   7 Years   40.00   15   0   53.29
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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Bart_argBart_arg
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6 years ago
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nakungth Author
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6 years ago
Thanks for your help!!
jbarnett14
wrote...

Yesterday
Thanks
lubennick
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2 hours ago
Smart ... Thanks!
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