In the Faustmann model, what factors determine the marginal benefits and marginal costs of allowing a stand of trees to continue to grow for another year, and therefore the dynamically efficient harvest interval?
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In the Faustmann model, what factors determine the marginal benefits and marginal costs of allowing a stand of trees to continue to grow for another year, and therefore the dynamically efficient harvest interval?
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- Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal benefit of using the resource is MB(Q) = 90Q. In the context of a static model, address the following questions. Calculate the efficient value of Q if the total stock of the natural resource is Q = 200: Provide a graphical representation of the solution.Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution.Consider the following two-period model of dynamically efficient extraction of a non-renewable natural resource. The constant social marginal cost of extraction is 40 in each period and the total stock of the resource is Q = 300 units. Moreover, the social marginal benefit is MB(Qt) = 200 - Qt, where Qt is the quantity of resource extracted in period t, for t = 0; 1. The discount factor is 0.8. What is the efficient quantity of resources extracted in each period? Provide a graphical representation of the solution.
- Consider the following two-period model of dynamically efficient extraction of a non-renewable natural resource. The constant social marginal cost of extraction is 40 in each period and the total stock of the resource is Q = 300 units. Moreover, the social marginal beneÖt is MB(Qt) = 200 Qt, where Qt is the quantity of resource extracted in period t, for t = 0; 1. The discount factor is 0:8.(a) What is the efficient quantity of resources extracted in each period? Provide a graphical representation of the solution. (b) What is the marginal user cost (or scarcity rent) of the resource in each period? (c) Suppose that there is a market to trade the resource. What is the equilibrium price corresponding to each period? Justify the answer. (d) Suppose that it is now expected that because of an extraction technol- ogy improvement, while the Örst period marginal cost of extraction will still remain MXC1 = 40, the second period one will now de- crease to MXC2 = 20. Answer the previous…Consider the following two-period model of dynamically efficient extraction of a non-renewable natural resource. The constant social marginal cost of extraction is 40 in each period and the total stock of the resource is Q = 300 units. Moreover, the social marginal beneÖt is MB(Qt) = 200 Qt, where Qt is the quantity of resource extracted in period t, for t = 0; 1. The discount factor is 0:8.(a) What is the efficient quantity of resources extracted in each period? Provide a graphical representation of the solution. (b) What is the marginal user cost (or scarcity rent) of the resource in each period?What are the essential elements of a cost recovery model? How should parks be designed to meet increasing populations? And how can government rethink delivery of parks? THANK YOU IN ADVANCE.
- . Find the equilibrium solution of given economic models, a- Qd = 8 – P2 , Qs = P2 – 2Consider the following two-period model of dynamically efficient extraction of a non-renewable natural resource. The constant social marginal cost of extraction is 40 in each period and the total stock of the resource is Q = 300 units. Moreover, the social marginal benefit is MB(Qt) = 200 Qt, where Qt is the quantity of resource extracted in period t, for t = 0; 1. The discount factor is 0:8. What is the marginal user cost (or scarcity rent) of the resource in each period?Question: Suppose that the marginal cost of extracting a non-renewable natural resource is MXC(Q) = 10 and the marginal beneÖt of using the resource are MB(Q) = 90Q. In the context of a static model, address the following question: Calculate the efficient value of Q if the total stock of the natural resource is Q = 50: Provide a graphical representation of the solution. My Note: This is my first time resubmitting, I was told to confirm that MXC(Q) =10 is the correct form of the Marginal cost of extraction to answer this question correctly. I'm not sure but this is the way my professor asked his question.
- Consider the following two-period model of dynamically efficient extraction of a non-renewable natural resource. The constant social marginal cost of extraction is 40 in each period and the total stock of the resource is Q = 300 units. Moreover, the social marginal benefit is MB(Qt) = 200 Qt, where Qt is the quantity of resource extracted in period t, for t = 0; 1. The discount factor is 0:8. (c) Suppose that there is a market to trade the resource. What is the equilibrium price corresponding to each period? Justify the answer.Consider the one-sector Schumpeterian model in discrete time analyzed in the previous exercise, except that now (.) denotes the probability of innovation, and each innovation improves the quality of a machine q to λq, where λ > 1. Suppose that when a new innovation arrives a fraction ϕ of workers employed in the final good production are unable to adapt to this new technology and need to remain unemployed for one time period to “retool.” (a) Define the equilibrium and steady-state (BGP) allocations. [Hint: also specify the number of unemployed workers in equilibrium.] (b) Define the appropriate generalization of the steady state for this economy, and determine the number of unemployed workers in this equilibrium. (c) Show that the economy experiences bursts of unemployment followed by periods of full employment. (d) Show that a decline in ρ increases the average growth rate and the average unemployment rate in the economy.A farmer in rural South Africa observes that the quality of her soil is degrading and preventing her from maximizing yield. As a result, she decides to incorporate new techniques including applying compost, rotating crops, and stopping tillage. What kind of agriculture is this farmer implementing? Conventional agriculture Modern agriculture Conservation agriculture Factory farming Although conservation agriculture provides several benefits, what is one primary reason that farmers may be reluctant to adopt those practices? Yield decreases over time Intensive labor requirements Requirements of an irrigation system Heavy reliance on synthetic fertilizers Under the Kyoto Protocol, if France built a solar power plant in Senegal and then claimed “carbon credits” for reducing global carbon dioxide emissions from energy production in sub-Saharan Africa, this would be an example of:…