Optimal extraction over the long term The diagram below is used for the next 5 questions. It depicts the optimal path of price and quantity a depletable fossil fuel (which we will call oil). Also shown is the marginal extraction cost for oil denoted MEC. There is a substitute available in innite supply with a constant MC of $60 per unit of energy. Let qt denote the quantity of oil in period t and qst denote the quantity of solar energy in period t. Total energy consumed is the sum of oil and the renewable substitute, given as Q = qrif + qst. Demand for total energy in any time period, t, is a linear function of price, Pt according to the following equation: Pt = or - B Qt , where a and [3 are constants. The total stock of oil available is So units. The discount rate is denoted as r. a 3* 1,9699 1* Answer the following questions. Note that no calculations are required for this