Suppose Coal Is Mined at a Zero Marginal Cost and Is

question 10

Multiple Choice

Suppose coal is mined at a zero marginal cost and is priced competitively.If the price of coal is growing faster than the interest rate,then coal miners

• A) are making positive economic profits.
• B) will increase the amount of coal left unmined.
• C) should extract more coal now and less coal in the future.
• D) will exit the industry in the long run.

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Definitions:

Hydrogen Bonding

A type of weak chemical bond that is formed between the hydrogen atom in one molecule and an electronegative atom in another molecule.

Water Molecules

The smallest unit of water (H2O), consisting of two hydrogen atoms covalently bonded to a single oxygen atom, essential for life and all known forms of chemistry.

Charge

The property of matter that causes it to experience a force when placed in an electromagnetic field.

Humidity

A measure of the amount of water vapor present in the air, often expressed as a percentage.