Suppose your uncle gave you an oil well like the one described in Section 15.8. (Marginal production

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Suppose your uncle gave you an oil well like the one described in Section 15.8. (Marginal production cost is constant at $50.) The price of oil is currently $80 but is controlled by a cartel that accounts for a large fraction of total production. Should you produce and sell all your oil now or wait to produce? Explain your answer.
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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