A company's extraction cost curve slopes upward to reflect:
A. that marginal extraction costs increase as the company extracts more of the resource.
B. that user costs rise as the company extracts more of the resource.
C. that the price of the nonrenewable resource increases as the amount extracted increases.
D. all of these.
Answer: A
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If the price elasticity of demand for a product equals 1, as its price rises the
A) quantity demanded increases. B) total revenue increases. C) quantity demanded does not change. D) total revenue does not change.
In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because
A) they believe a market-based approach will reduce pollution more efficiently. B) it does not lead to significant reductions in pollution. C) the "command-and-control" approach leads to negative externalities. D) the "command-and-control" approach is designed to help firms at the expense of consumers.
The distinguishing characteristic of a public good is
A) noncompetitive production. B) durability. C) exclusivity. D) nonrival consumption.
The countercyclical monetary and fiscal policies that were supposed to produce full employment without inflation don't work in economies characterized by the Phillips curve
Indicate whether the statement is true or false