A. increase the extraction cost of a resource. B. increase the user cost of extracting a resource. C. reduce the user cost of extracting a resource. D. have no impact on either the user cost or extraction cost of a resource
A. a firm will extract all of a resource in the present.
B. a firm will extract resources at a faster rate than if the user cost was positive.
C. a firm will extract resources at a faster rate than if the user cost was negative.
D. the price of the resource will not change.
Answer: B
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