(Answered) Suppose that there is an initial supply of a costless

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Suppose that there is an initial supply of a costless nonrenewable resource equal to 79 metric tons. Annual demand (Q) for the resource is constant over time and equal to Q=4-P. The market interest rate is 4%.

Calculate the 1) price, 2) quantity extracted, 3) size of the stock, 4) extraction profit, and 5) net present value for the resource for 2 years.

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