Question: Consider a two-period resource allocation problem where the efficient allocation of the resource implies a market price of $8 in the first period. Assume in

Consider a two-period resource allocation problem where the efficient allocation of the resource implies a market price of $8 in the first period. Assume in both periods the constant marginal extraction costs equal $4 and the social discount rate is 25%. The socially efficient undiscounted market price in the second period must be:

Question 19Select one:

a.$8.

b.$9.

c.$11.

d.$4.

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