When the Benefits of Conservation and Future Use Are Excluded

question 174

Multiple Choice

When the benefits of conservation and future use are excluded from a cost-benefit analysis, there is a tendency to

• A)more efficiently allocate resources.
• B)overvalue future resources by considering them "priceless."
• C)stop resource extraction.
• D)extract and use resources as quickly as possible.

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Definitions:

Short-run

A timeframe in economics during which at least one factor of production is fixed and cannot be changed.

MC

is an abbreviation for Marginal Cost, which represents the change in total cost that arises when the quantity produced is incremented by one unit.

ATC

Average Total Cost is determined by dividing the total production expense by the output quantity.

Perfectly Competitive Firm

A firm that operates in a market where there are many buyers and sellers, the products are homogeneous, and no single buyer or seller can influence the market price.