Previous Exams

Fall 2012 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 1

(a) Qa = 300, MCA = 1400.

(b) Qp = 600 - 300 = 300.

(c) Qa = 200.

(d) Qa = 187.

(e) DWL = $756. Question 2 (a) 636 (b) B = 20/444,000; A =$48.65.

(c) $26.3M (d)$36.3M

Question 5

(a) Without the backstop:

 Period R MEC P Q 0 100 300 400 100 1 200 250 450 275 2 400 200 600 400

(b) With the backstop:

 Period R MEC P Q 0 50 300 350 125 1 100 250 350 325 2 200 200 400 500

(c) Total amount produced from the backtstop: 175.

(d) Backstop will be used in period 2.

Question 6

(a) MDC = $150 (b) Minimum price to induce exploration:$450

(c) Without exploration:

 Period R MEC P Q 0 100 300 400 400 1 200 300 500 1100

(d) With exploration:

 Period R MEC P Q 0 75 300 375 425 1 150 300 450 1150

(e) Amount found: 75

(f) Expected wells drilled: 125

URL: https://wilcoxen.maxwell.insightworks.com/pages/3706.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 12/20/2012