A "backstop resource" is a close substitute for a depletable resource that is available in almost unlimited supply but at a higher cost. Shale oil is a backstop resource for crude oil. Which of the following statements is correct?
a. The production of shale oil is likely to increase over time even if crude oil is still available.
b. Shale oil is unlikely to be produced until all the crude oil has been depleted.
c. The existence of shale oil as a backstop resource will discourage firms from seeking new reserves of crude oil.
d. In the future, shale oil is likely to be produced at the same time as crude oil and to sell for a lower price.
a
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The figure above shows the marginal revenue, marginal cost, and demand curves for an airline offering daily flights between Los Angeles and Toronto. If the airline is regulated using a marginal cost pricing rule total surplus will be ________
A) $100,000 B) $60,000 C) $80,000 D) $20,000
A change in input prices has no impact on the budget line
a. True b. False Indicate whether the statement is true or false
Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $20; Oli's cost per ton is $28. Refer to the information given. If the
market price of Pacific halibut is $40 per ton, what is the maximum amount Melanie would be willing to pay per ton for Oli's ITQs? A. $20. B. $28. C. $40. D. $12.
In general, the IMF provides developing countries with:
A. loans and lets these countries decide how the loans will be used. B. technical advice but does not provide them with loans. C. loans, but only if the government adopts certain policies specified by the IMF in return. D. neither loans nor technical advice.