Asked by Nazwa Al-Sayeed on Apr 30, 2024
Verified
The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost.
Total Cost
The sum of fixed cost and variable cost.
Extraction Cost
The expenses associated with the removal of raw materials from the earth, such as mining or drilling.
User Cost
The cost associated with the use of a service or the depletion of a capital good.
- Acquire knowledge on the interplay between supply and demand in the field of productive resources.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
This statement is true. The total cost of extracting and selling a resource in a given year is the sum of the extraction cost and user cost. Extraction cost is the cost of physically removing the resource from the ground or other sources, while user cost refers to the economic cost associated with using up the resource and the opportunity cost of not being able to use it in the future.
Learning Objectives
- Acquire knowledge on the interplay between supply and demand in the field of productive resources.