Scenario 17-2.Imagine that two oil companies,Lexxon and PB,own adjacent oil fields.Under the fields is a common pool of oil worth $48 million.Drilling a well to recover oil costs $4 million per well.If each company drills one well,each will get half of the oil and earn a $20 million profit ($24 million in revenue - $4 million in costs).Assume that having X percent of the total wells means that a company will collect X percent of the total revenue.
-Refer to Scenario 17-2.If Lexxon were to drill a second well and PB also drilled a second well,what would Lexxon's profit be?

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The Answer of Scenario 17-2.Imagine that two oil companies,Lexxon and PB,own adjacent oil fields.Under the fields is a common pool of oil worth $48 million.Drilling a well to recover oil costs $4 million per well.If each company drills one well,each will get half of the oil and earn a $20 million profit ($24 million in revenue - $4 million in costs).Assume that having X percent of the total wells means that a company will collect X percent of the total revenue.
-Refer to Scenario 17-2.If Lexxon were to drill a second well and PB also drilled a second well,what would Lexxon's profit be?