Previous Exams

# Spring 2010 Exam 2 Solution

Here are the final numerical results for each section of the exam.  You can use them to check your work if you do the exam for practice.  If you have trouble with the problems, or don't get the answers shown here, stop by during office hours or make and appointment and we can go over them.

### Question P5/Q6

(a) The table is shown below:

 Pd R MEC P Q 0 20 40 60 220 1 40 30 70 215 2 80 20 100 200

(b) With the backstop, the table becomes:

 Pd R MEC P Q 0 10 40 50 225 1 20 30 50 225 2 40 20 60 220

(c) Backstop production=35.

### Question P6/Q4

(a) Equilibrium price for exploration=250;

(b) The table without exploration:

 Pd R MEC P Q 0 100 100 200 1600 1 200 100 300 3400

(c) The table with exploration:

 Pd R MEC P Q 0 75 100 175 1650 1 150 100 250 3500

(d) Resource found via exploration=150; (e) expected number of wells=375.

URL: https://wilcoxen.maxwell.insightworks.com/pages/3109.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 12/18/2012