8. Suppose that there is a finite quantity of coal. This coal will be extracted over two days. The marginal benefit of extracting coal in period t is as follows. MBt = 20 - Qt MCt = 1 The discount rate is 50%. The total quantity of coal is as follows. Q1 + Q2 = 10
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MB1 = 20 - Q1 Total benefit of extracting coal in period 1 = Q1 * MB1 Show more…
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