Which of the Following Would Cause the Present Optimal Extraction

question 155

Multiple Choice

Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

• A) An increase in the present value of expected future profits.
• B) A decrease in extraction costs.
• C) A decrease in user costs.
• D) An increase in the current price of the resource.

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Definitions:

Business Judgment Rule

A legal doctrine that protects corporate executives' decisions when made in good faith and believed to be in the best interest of the company.

Corporate Opportunity

A legal doctrine that restricts leaders of a corporation from taking personal advantage of an opportunity that should belong to the corporation.

Safe Harbor

A provision in a law or regulation that provides protection from liability or penalty under specific situations or conditions.

Corporate Manager

An individual responsible for leading, directing, and overseeing the operations and strategy of a corporation.