The Key to Optimally Managing Renewable and Nonrenewable Resources Is

question 284

Multiple Choice

The key to optimally managing renewable and nonrenewable resources is to design incentive structures that

• A)reduce the costs of production to the lowest possible level.
• B)increase the benefits from production to the highest possible level.
• C)weigh the net benefits of current use with the net benefits of future use.
• D)add the net benefits of current use to the net benefits of future use.

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Definitions:

Demand Equals

A state in a market where the quantity of a good or service desired by buyers is equal to the quantity supplied by sellers, resulting in market equilibrium.

Marginal Cost

The added expenditure resulting from creating an additional product or service unit.

Long Run

A period of time in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Zero Economic Profit

A situation where total revenues are exactly equal to total costs, indicating no supernormal profit beyond the normal rate of return.