Refer to the diagram, assuming that the firm represented is operating on curve 1. If the current price of the resource falls by $40, the optimal quantity extracted in the first year will     Multiple Choice   decrease by 250.   remain unchanged.   decrease by 500.   increase by 500

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A:

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A: ln(Qs) = 0.200 + 0.550ln(p)_______________(1) ln(Qd) = 2.600 -0.200ln(p) +…