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(Econ) Currently The Price Of A Nonrenewable Natural Resource Is $50 Per Unit While The MEC Is $20 Per Unit.?

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sportsontap | 16:42 Sun 10th Oct 2010 | Business & Finance
3 Answers
a) What is the MUC today?
b) If the interest rate is 10%, what will be the MUC each year over the next 5 years?
c) Using your answer to part b and assuming that the MEC will be constant, find the dynamically efficient price each year for the next 5 years.
d) Suppose there is an alternative technology that costs $65 per unit. What will be the dynamically efficient price of this non-resource in each of those five years?
e) Now assume the MEC increases by $3 per unit each year. Repeat part d and find the dynamically efficient price over the next five years.
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(Econ) Currently The Price Of A Nonrenewable Natural Resource Is $50 Per Unit While The MEC Is $20 Per Unit.?

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