From the Hotelling rule, we would expect that a perfectly competitive industry selling an exhaustible resource would
A) sell more of it than a monopolist would in each period.
B) sell it all at once.
C) sell less of it than a monopolist would in each period.
D) not sell it.
E) not sell it unless interest rates were low.
A
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The job finding rate is defined as
A) the probability that someone who has been unemployed for over a year will find a job in the next month. B) the probability that someone who is not in the labor force will enter the labor force in the next month. C) the probability that someone who is employed will change jobs in the next month. D) the probability that someone who is unemployed will find a job in the next month.
Management of expectations by a central bank is based on the view that ________
A) decreasing the federal funds rate will lead to a reduction in the discount rate B) if economic agents believe that the price of an individual asset will rise in the future, they will buy that asset today, contributing to its eventual price increase C) if households expect an increase in prices in the future, they will engage in spending today D) households will increase their spending today if they believe that the monetary authorities are committed to maintaining low interest rates
The Golden Rule "Do unto others as you would have done unto you" is an example of the economic concept of:
A. marginal utility. B. altruism. C. reciprocity. D. selfishness.
When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident, the most profitable contract for it:
a. offers full insurance at a higher price than the full-information policy. b. offers full insurance at a lower price than the full-information policy. c. offers partial insurance at a higher price than the full-information policy. d. offers partial insurance at a lower price than the full-information policy.