Need to help to solve this question Allocate resource between two time periods t 1,2 The fixed supply of the resource is 10 barrels Demand is same in both periods and given by P t 15 q t Marginal cost of extracting the resource is the same in both periods and is given by MC t $3 The discount rate is 7 1 What is the dynamically efficient allocation of this resource in period 1 Please enter this number rounded to thehundredths place inthe 1st box below

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Question: Need to help to solve this question Allocate resource between two time periods t=1,2 The fixed supply of the resource is 10 barrels Demand is

Need to help to solve this question

Allocate resource between two time periods t=1,2
The fixed supply of the resource is 10 barrels
Demand is same in both periods and given by P_t= 15 - q_t
Marginal cost of extracting the resource is the same in both periods and is given by MC_t=$3
The discount rate is 7%

1. What is the dynamically efficient allocation of this resource in period 1? Please enter this number rounded to thehundredths place inthe 1st box below.

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