The Figure Given Below Represents an Imperfectly Competitive Resource Market

question 2

Multiple Choice

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-The marginal cost of extraction of a nonrenewable resource increases with passage of time because:

• A)the technology used in extraction depreciates in value.
• B)the price of the product that uses this resource decreases.
• C)the exchange rate in the international market appreciates.
• D)the tragedy of commons problem arises.
• E)the resource gradually becomes scarce.

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Definitions:

Defence Mechanisms

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety or unacceptable impulses.

The Unconscious

A part of the mind that houses memories, desires, and feelings that are not within conscious awareness.

Childhood Experiences

Events, interactions, and relationships during early years of life that significantly influence one's development and personality.

Individual Psychology

A psychological theory and therapy approach focusing on the uniqueness of each person and the importance of social context in personality development, introduced by Alfred Adler.