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Assume the following two equations for the extraction of a natural resource: P = 18 –...

Assume the following two equations for the extraction of a natural resource: P = 18 – 0.75 Q for Marginal Willingness to Pay P = 3 for a constant Marginal Cost Discount Rate = 6% Solve for the following in a two time period setting: a)Find and label the equilibrium when there is no limit on Q. b)Assume that there are only 25 units of the natural resource to be extracted, find the optimal extraction rates over the two periods. c)Find the Total Marginal Net Benefits under the optimal extraction rate. d)Find the Marginal User Cost for the resource.

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