Which of the following would cause the present optimal extraction level of a nonrenewable resource to rise?
A. A decrease in the price of the resource.
B. An increase in the extraction cost of the resource.
C. A decrease in the user cost of the resource.
D. A decrease in interest rates.
Answer: C
You might also like to view...
Refer to Scenario 14.1. Marco and Lisette decide to help each other out and agree to split any medical bills from their doctor
With this new arrangement, Marco's dominant strategy is to schedule ________, and Lisette's dominant strategy is to schedule ________, A) 1 visit; 1 visit B) 1 visit; 2 visits C) 2 visits; 1 visit D) 2 visits; 2 visits
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, they will pick Q equal to a. 0 b. 10 c. 25 d. 70
Which of the following is true about sole proprietorship in the United States?
a. It is the most common form of business organization. b. It is responsible for a large portion of total production of goods and services. c. It offers the owner the least personal liability of any form of business organization. d. There is no opportunity cost to operating the business. e. Only one individual can work in such a firm.
Oligopoly can arise from:
a. diseconomies of scale in production. b. limited demand for a product in the market. c. government regulations. d. easy availability of the crucial inputs. e. reduction of trade barriers.