Assume that a country is endowed with 24 units of oil reserve.
(a) the marginal willingness to pay for oil in each period is given by P = 13 â 0.56q
(b) the marginal cost of extraction of oil is constant at $3 per unit
(c) the discount rate is 1%
(d) the marginal cost of renewable energy is $9, where c
How long will it take, for a country to transition to a renewable energy source?