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25-05-2023
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Assume that a country is endowed with 8 units of all reserve. There is no oll substitute available. How long the oil reserve will last if (a) the marginal willingness to pay for oil in each period is given by P=8-0.579. (b) the marginal cost of extraction of oil is constant at $4 per unit, and (c) discount rate is 1%?

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