Over the Long Term, the Ultimate Determinant of the Price

question 71

Multiple Choice

Over the long term, the ultimate determinant of the price of a depletable resource is the:

• A) extraction cost.
• B) user cost.
• C) demand.
• D) availability of substitutes.
• E) cost of finding new reserves.

---

Definitions:

Present Value

The present value of a future sum of money or cash flow series calculated with a particular rate of return.

Market Price

The rate for exchanging assets or services in the marketplace currently.

Annuity Payments

Periodic payments made for a specified period or for the life of the recipient, often used in retirement planning.

Future Value

The value of an investment or cash flow at a specific future date, considering compound interest.