Asked by Abigail Aleman on Apr 28, 2024
Verified
The user cost of nonrenewable resources is
A) the current cost of extracting and selling the resource.
B) the future cost of extracting and selling the resource.
C) the opportunity cost of extracting and selling the resource today instead of in the future.
D) the cost of future extraction and sale of a resource instead of current extraction and sale.
User Cost
The cost of using a durable good or asset, which includes depreciation, interest lost on funds used to buy the asset, and maintenance costs.
Nonrenewable Resources
Natural resources that cannot be replenished within a human lifetime, such as fossil fuels or minerals.
Opportunity Cost
The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.
- Recognize the importance of user costs in the economics of nonrenewable resource extraction.
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Learning Objectives
- Recognize the importance of user costs in the economics of nonrenewable resource extraction.
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