a) What is the MUC today?
b) If the interest rate is 10%, what will be the MUC each year over the next 5 years?
c) Using your answer to part b and assuming that the MEC will be constant, find the dynamically efficient price each year for the next 5 years.
d) Suppose there is an alternative technology that costs $65 per unit. What will be the dynamically efficient price of this non-resource in each of those five years?
e) Now assume the MEC increases by $3 per unit each year. Repeat part d and find the dynamically efficient price over the next five years.
This question has been posted on numerous forums recently- Are they all your postings?
If not, just google your question and see what answers there are.
Or go back to your books/notes/tutor