Asked by Kaylyn Masters on Jun 05, 2024
Verified
User cost is defined as the present value of the profit the company would earn if it delayed extraction until next year.
User Cost
The opportunity cost of using a durable good or natural resource, representing the foregone benefits from not preserving the asset for future use.
Present Value
The present-day value of a future amount of money or series of payments, calculated using a particular return rate.
- Understand the fundamentals of supply and demand within the realm of productive resources.
Verified Answer
JR
John Ryan O'RourkeJun 07, 2024
Final Answer :
True
Explanation :
This is the correct definition of user cost.
Learning Objectives
- Understand the fundamentals of supply and demand within the realm of productive resources.