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Chapter 5 Resource Allocation over Time

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Presentation on theme: "Chapter 5 Resource Allocation over Time"— Presentation transcript:

1 Chapter 5 Resource Allocation over Time

2 Supply, Demand, and Marginal Net Benefit for Copper (supply and demand for copper)

3 Supply, Demand, and Marginal Net Benefit for Copper (marginal net benefit for copper)

4 Allocation of Copper Over Two Time Periods

5 Different Intertemporal Resource Allocations (Optimal Intertemporal Resource Allocation)

6 Different Intertemporal Resource Allocations (Suboptimal Intertemporal Resource Allocation)

7 Market for Copper with User Costs (First Period)

8 Market for Copper (Second Period)

9 Intertemporal Resource Allocation

10 Hotelling's Rule on Equilibrium Resource Price


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