AEM 2500, Environmental and Resource Economics, Fall 2010 Homework #8: Non-Renewable Resources and Monopoly (Distributed Nov. 16. Due in Red Box by 12:00 Noon Nov. 29) Late Homework Will Not be Accepted Notes: 10 Points. Clearly label your graphs and identify your answers. If we can’t read it we can’t grade it. 1. (6 points) Harris problem 1, 2 and 4, p. 104. (Hint: you might want to solve #4 first, before solving #2) 2. (4 points) a. Using our oil market from throughout the class where: Market Quantity Demanded: Q D = 120 – 2 P P = 60 – (1/2)Q D Marginal Revenue: MR = 60 - Q D Market Quantity Supplied: Q S = (14/5) P P = (5/14) Q S Marginal external social cost:
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This note was uploaded on 12/20/2010 for the course AEM 25 at Cornell.