Show your work and remember to label lines and axes of diagrams 1) A mine faces...

  

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Show your work and remember to label lines and axes of diagrams 1) A mine faces costs of TC = 1+q where q is the quantity of ore mined. 2) The mine receives a price of P = 24 per unit of mined ore. The initial stock is 3 units of ore. a) The market interest rate is 10%. What quantity would the company mine each period and how many periods would the mine operate? Explain the intuition of each step b) If there were an infinite stock of ore, what quantity would the company mine in the first period? Explain = Consider the global demand for Lithium, Qo 121-P. If the Lithium mining industry were perfectly competitive, had zero marginal costs, faced 10% interest rates, and had initial stocks of 32, what global extraction path would be expected? Explain. Show your work and remember to label lines and axes of diagrams 1) A mine faces costs of TC = 1+q where q is the quantity of ore mined. 2) The mine receives a price of P = 24 per unit of mined ore. The initial stock is 3 units of ore. a) The market interest rate is 10%. What quantity would the company mine each period and how many periods would the mine operate? Explain the intuition of each step b) If there were an infinite stock of ore, what quantity would the company mine in the first period? Explain = Consider the global demand for Lithium, Qo 121-P. If the Lithium mining industry were perfectly competitive, had zero marginal costs, faced 10% interest rates, and had initial stocks of 32, what global extraction path would be expected? Explain.