- +44 141 628 6080
- [email protected]

In the numerical example given in the text the inverse

Assignment 1

Efficient Allocation

In the numerical example given in the text, the inverse demand function for the depletable resource is P = 8 - 0.4q and the marginal cost of supplying it is $4.

(a) If 40 units are to be allocated between two periods, in a dynamic efficient allocation, determine how much would be allocated to the first period and how much to the second when the discount rate is zero.

(b) Calculate the efficient price for the two periods.

(c) Calculate the marginal user cost in each period.

Expected delivery within 24 Hours

1957783

Questions

Asked

3,689

Active Tutors

1439913

Questions

Answered

**
Start Excelling in your courses, Ask a tutor for help and get answers for your problems !! **

Â©TutorsGlobe All rights reserved 2022-2023.

## Q : The 1-year libor rate is 10 with annual compounding a bank

the 1-year libor rate is 10 with annual compounding a bank trades swaps where a fixed rate of interest is exchanged for