Question

You embark on a project to extract oil from the arctic. The oil field you have been permitted to exploit will become inaccessible after two years due to melting ice sheets, but you spend the next two years extracting oil. The price of oil is $65/bbl this year but increased electric vehicle adoption next year lowers demand such that the period 2 price is $50/bbl. This year it costs c_1(q_1) = 10 + 5q_1 + 0.1q_12ci(q1)=10+5q1+0.1q12 to extract oil, and due to increased regulation, next year it will be c_2(942) = 20 + 69_2 + 0.2q_2^2c2(92)=20+6q2+0.2q22. Assume the field has 500bbl available to extract and you have a discount rate of 0.2. (original question) Repeat parts (4.1)-(4.3) but this time assuming that this field has the only oil left in the world and thus you are a monopoly producer. You face prices p_t = 400 - q_tpt=400-qt and must extract all 500bbl during these two years. 1 First Order Conditions: New optimal quantities and shadow price of additional oil 1: 92: lander: 2. In three or fewer sentences, explain which market structure (competitive or monopolistic) would be preferred by environmentalists who want to prevent a lot of oil from being extracted at once. If you've taken other environmental economics courses, you may consider also mentioning what might happen if the oil were open access, that is, anyone who wants to can extract it, but there is still a finite amount available to extract.​

Answer 1

Answer:

During 2019–20, most of the sub-sectors of the services sector witnessed a moderation in growth. The growth in tourism sector decelerated with weaker growth in foreign tourist arrivals and consequently in foreign exchange earnings. In the ports sec.