If an exhaustible resource is scarce, has constant marginal cost over time, and is sold in a competitive market, then
A) its price increases over time.
B) its price will not be a function of the interest rate.
C) its price moves independently of past prices.
D) its price equals marginal cost.
A
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The movement of production to affiliate firms outside of the country is known as outsourcing
Indicate whether the statement is true or false
In the endogenous growth model presented in the text, an increase in the efficiency of human capital accumulation
A) increases the growth rate of human capital and increases the growth rate of output. B) increases the growth rate of human capital and decreases the growth rate of output. C) decreases the growth rate of human capital and increases the growth rate of output. D) decreases the growth rate of human capital and decreases the growth rate of output.
Rational expectation theory implies that accurately anticipated change in aggregate demand: a. will increase RGDP in the short run
b. will affect RGDP and inflation only in the long run. c. may affect RGDP but not nominal GDP in the short run. d. will do none of the above.
The rate of interest is determined by the
a. quantity of money available on the market b. supply and demand for loanable funds c. marginal factor cost of capital d. firm's MRP and the price of the good e. firm's MPP and the price of the good