Answer Happy

Assume that the oil extraction company needs to extract Q units of oil (a depletable resource) reserve between two periods in a dynamically efficient manner. What should be a maximum amount of so that the entire oil reserve is extracted only during the 1st period if (a) the marginal willingness to pay for oil in each period is given by P = 33 -0.39, (b) marginal cost of extraction is constant at $2 per unit, and (c) discount rate is 247