Suppose that, over the short run (say the next five years), demand for OPEC oil is given by Q =
Question: #5) Suppose that, over the short run (say the next five years), demand for OPEC oil is given by Q = 57.5 - .5P or, equivalently, P = 115 - 2Q. (Here Q is measured in millions of barrels per day.) OPEC's marginal cost per barrel is $15.
a) What is OPEC's optimal level of production? What is the prevailing price of oil at this level?
Price: $2.99
Solution: The solution consists of 1 page
Deliverables: Word Document
Deliverables: Word Document
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