Question: User cost is equal to the present value of future profits in the model presented in Figure. Choosing the optimal extraction level Will the optimal

User cost is equal to the present value of future profits in the model presented in Figure.
Choosing the optimal extraction level

Will the optimal quantity to mine in the present year increase or decrease if the market rate of interest rises? Does your result make any intuitive sense?

EC UC 0 02 First-year quantity extracted

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