Assume that a country is endowed with 25 units of oil reserve.   (a) the marginal willingness to pay for oil in each period is given by P = 13 – 0.53q (b) the marginal cost of extraction of oil is constant at $3 per unit (c) the discount rate is 2% (d) the marginal cost of renewable energy is $9, where c

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Assume that a country is endowed with 25 units of oil reserve.  

(a) the marginal willingness to pay for oil in each period is given by P = 13 – 0.53q
(b) the marginal cost of extraction of oil is constant at $3 per unit
(c) the discount rate is 2%
(d) the marginal cost of renewable energy is $9, where c<d<a.

How long will it take, for a country to transition to a renewable energy source?

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