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Model of dynamically efficient extraction

Refer to the two-period model of dynamically efficient extraction of a nonrenewable resource. The model predicts that resource extraction and consumption decreases over time. How is it possible to reconcile this theoretical result with the increases in extraction and use of many of these resources that were observed over the last century?Deadweight L055 clu eto user costs andexternal costs] MEX+ MEC+ MUC = MIC [MUC = Marginal User costs} MEX+ MEC {Marginal Extractioncosts+ Marginal External Costs}MEX [MArginal Private Cost}…

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