Assume the same demand conditions as stated in problem 1, Business Economics

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Assume the same demand conditions as stated in problem 1

Assume the same demand conditions as stated in Problem 1, but let the discount rate be 0.10 and the MEC be $4.

(a) How much would be produced in each period in an efficient allocation?

(b) What would be the marginal user cost in each period?

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Business Economics: Assume the same demand conditions as stated in problem 1

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Business Economics: Assume the same demand conditions as stated in problem 1

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