An increase in the present value of the profit that can be obtained by delaying resource extraction will lead profit-maximizing firms to:
A. reduce extraction in the present.
B. increase the current rate of extraction.
C. invest in less extraction equipment.
D. hire more workers to support current production.
Answer: A
You might also like to view...
Which of the following is NOT true concerning a society's production possibilities frontier (PPF)?
A) It reveals the maximum amount of any two goods that can be produced from a given quantity of resources. B) Tradeoffs occur when moving along a PPF. C) Production efficiency occurs when production is on the frontier itself. D) Consumers will receive equal benefits from the two goods illustrated in the PPF.
Is a sailboat purchased in Victoria, British Columbia, a private good or a public good?
What will be an ideal response?
Hermione and Ron are at a sweet shop in London. Hermione looks at the prices of ice cream and chocolate bars and says to Ron: "I can tell you what your marginal rate of substitution between ice cream and chocolate bars is at your best affordable
point." "No, you can't," says Ron. "You don't know my preferences and how much money I have." "I don't need to know all this because I know the prices," Hermione replies. Is she right? Explain.
Excessive unemployment benefits and government overregulation are part of the ________ hypothesis of why a nation's ________ unemployment rate can be high
A) hysteresis, cyclical B) hysteresis, natural C) structuralist, cyclical D) structuralist, natural