12) An exponential reserve index assumes... a) That economically recoverable res
ID: 1107951 • Letter: 1
Question
12) An exponential reserve index assumes... a) That economically recoverable reserves will increase exponentially b) That consumption will increase exponentially c) That the resource lifetime will increase exponentially d) That identified reserves will increase exponentially e) That undiscovered reserves will increase exponentially 13) A resource-extracting firm will tend to operate where .. a) Marginal revenue equals marginal cost b) Average revenue equals average cost c) Marginal revenue exceeds marginal cost d) Total revenue equals total cost e) Marginal cost exceeds marginal revenue 14) If price exceeds marginal cost, we say that a firm receives .. a) Extraction surplus b) User costs c) Consumer surplus d) Royalty payments e) Resource rents 15) Which one of the following statements best describes the real-world experience with Hotelling's rule? a) Hotelling's rule clearly does not apply to the real world b) Hotelling's rule has accurately predicted resource prices over time c) Hotelling's rule has not affected prices because of improvements in technology d) Hotelling's rule has not affected prices because of reductions in demand e) Hotelling's rule has not affected prices because of reductions in interest ratesExplanation / Answer
Answer:- an exponential reserve index assumes
Correct Answer:- That the consumption will increase exponentially
Answer:- A resource-extracting firm will tend to operate where?
Correct Answer:- Marginal revenue exceeds marginal cost
Answer:- If price exceeds marginal cost, we say that a firm receives ...
Correct Answer:- Resource Rents
Answer:- Which one of the following statements best describes the real-world experience with Hotelling's rule?
Correct Answer:- Hotelling's rule has not affected prices because of improvements in technology
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