Environmental Economics Multiple Choice and TRUE AND FALSE

  
Environmental Economics
TRUE OR FALSE – EXPLAIN The demand for oil in Alaska is given by 8−0.4q while the supply is 2. If Alaska has 20 barrels of oil for two years and the interest rate is 10%, it is better for Alaska to extract 5 barrels in year one and 15 barrels in year two than to extract 15 barrels in year one and 5 barrels in year two. Alaska follows the Hotelling rule in their decision to extract oil. In 2017, the marginal extraction cost of oil was $2 and the price of oil was $2.70. In 2018, the marginal extraction cost was $2.2 while the price was $3. What was the interest rate in Alaska?MULTIPLE CHOICE 1. Water is the main production input for the beer brewing companies in Milwaukee and therefore, their profits heavily depend on the price of water. The marginal cost of all brewing companies is 300 + 0.8Q where Q is gallons of water. Notice, however, that 0.4Q of that cost comes from the water embedded in wheat, which is also used for beer production. Brewing companies use wheat produced in Kansas in the production of beer. Finally, the marginal benefit is 1200 − 1.4Q where Q is gallons of water. Consider that brewing companies are the only consumers of water in Milwaukee and that Milwaukee Water Works provides water for beer production. What is the market price of water in Milwaukee? (a) 500 
(b) 409 
(c) 627 
(d) none of the above.2. Suppose the demand for oil in Alaska is given by 8 −0.4q while the supply is 2. Alaska only consumes its oil and the stock of oil is equal to 20 barrels for two years. If the interest rate is 10%, the government of Alaska will extract:(a) X1 = 5 barrels in year one and X2 = 15 barrels in year two.
(b) X1 = 15 barrels in year one and X2 = 5 barrels in year two.
(c) X1 = 12.039 barrels in year one and X2 = 7.961 barrels in year two.
(d) X1 = 11.278 barrels in year one and X2 = 8.722 barrels in year two. 
(e) None of the above.
Approximate price: $22
We value our customers and so we ensure that what we do is 100% original..

With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.