What Are Nonmarket, or Noneconomic, Values of Biodiversity? Give Examples

question 17

Essay

What are nonmarket, or noneconomic, values of biodiversity? Give examples of these, and justify the importance of preserving biodiversity for these noneconomic values.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a good or service, often varying with the level of production.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Total Fixed Costs

The sum of all costs that remain constant regardless of any change in a company's production volume.

Diminishing Returns

A principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.