The break even price for drilling is 540: the solution to
EV=-160+.2*2*(P-140)=0. Working backward: P2=540, R2=400, Q2=200; R1=200,
P1=340, Q1=400. Total produced via exploration = 600 - 390 = 210.
Site Index |
Zoom |
Admin
URL: https://cleanenergyfutures.insightworks.com/pages/2278.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 05/14/2008
