Asked by Sijia Zhang on May 18, 2024
Verified
The higher a resource's current price,the more extraction should be delayed to a later period.
Resource's Current Price
The present market price of a particular resource or commodity, reflecting its current demand and supply.
Extraction
The process of removing or obtaining a resource, material, or substance from its source or origin.
- Comprehend the principles of supply and demand as they apply to productive resources.
Verified Answer
SR
SIMONE ROYALMay 22, 2024
Final Answer :
False
Explanation :
The decision to delay extraction is not solely based on the current price of a resource. It also depends on factors such as expected future prices, extraction costs, and the rate of interest. If the expected future price increase is less than the rate of interest, it might be more profitable to extract now rather than later.
Learning Objectives
- Comprehend the principles of supply and demand as they apply to productive resources.