The Supply Curve of a Natural Resource Like Oil Has

question 157

Multiple Choice

The supply curve of a natural resource like oil has a positive slope because

• A)the supply becomes closer to exhaustion as demand rises.
• B)it becomes more costly to find and develop supplies as demand rises.
• C)rents rise as output increases.
• D)indirect taxes rise with output.

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Definitions:

Apparent Authority

A legal doctrine allowing a third party to rely on the representation of an agent that they have the authority to act on behalf of a principal, even if the agent lacks actual authority.

Actual Authority

The explicit power granted by a principal to an agent to conduct specific transactions or activities on the principal's behalf.

Price Fixing

An illegal agreement among competitors to set, raise, or stabilize prices or competitive terms.

Criminally Liable

The legal responsibility one holds for committing a crime, subjecting them to criminal prosecution and penalties.