Question: Consider a two - period resource allocation problem where the efficient allocation of the resource implies a market price of $ 2 1 in the

Consider a two-period resource allocation problem where the efficient allocation of the resource implies a market price of $21 in the second period. Assume in both periods the constant marginal extraction costs equal $1 and the social discount rate is 25%. The socially efficient undiscounted market price in the first period must be:
Question 10Select one:
a.
$17.
b.
$19.
c.
$20.
d.
$18.

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