Many Species of Animals Are Common Resources and Many Must

question 143

Multiple Choice

Many species of animals are common resources and many must be protected by law to keep them from extinction.Why is the cow not one of these endangered species, even though there is such a high demand for beef?

• A)cows reproduce at a high rate and have adapted well to their environment
• B)public policies have been implemented to protect cows from predators and diseases
• C)cows are privately owned and many endangered species are owned by no-one
• D)there is a natural ecological balance between the birth rate of cows and human consumption

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Definitions:

Marginal Cost

The hike in cost incurred by generating an additional unit of a good or service.

Profit-Maximizing

This is the process by which a firm decides on the price and output level that returns the maximum profit.

Short-Run Monopoly

A situation where one company dominates the market for a certain product or service temporarily, often before new entrants arrive.

Short Run

A time period in which at least one input, typically capital, is fixed, affecting the firm's capacity to adjust to changes in demand or production.