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.

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Definitions:

Coke

A carbon-rich solid material derived from coal used primarily as a fuel in the smelting of iron ore.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, commonly consumed by humans.

Perfectly Competitive

Refers to a market structure where many firms sell identical products, entry and exit are easy, and no single firm can influence the market price.

Airbus Industries

A major European multinational aerospace corporation known primarily for designing, manufacturing, and selling commercial aircraft worldwide.