2 years ago

The purchase of one cup of coffee a day...

Business

1 answer:

MrRissso [65]2 years ago

4 0

Answer is c

Hope that helps

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Given that:

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The constant marginal extraction cost MEC for both periods = $2

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∴

The efficient undiscounted market price for the 2nd period can be determined by using the formula:

$P_1 - MEC_1 = \dfrac{P_2 -MEC_2}{1+r} \\ \\ \implies 10 -2 = \dfrac{P_2-2}{1+0.1} \\ \\ 8 = \dfrac{P_2-2}{1.1} \\ \\ P_2 -2 = 8 \times 1.1 \\ \\ P_2-2=8.8 \\ \\ P_2 = 8.8+2 \\ \\ \mathbf{P_2 = \$10.80}$

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An obstacle course helps your mind to focus on your project or activities and gets your thought process going.

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kirza4 [7]

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