Asked by Avery Villa on May 06, 2024

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The user cost of extracting a nonrenewable resource is:

A) inversely related to how much of the resource remains.
B) directly related to how much of the resource remains.
C) unrelated to how much of the resource remains.
D) inversely related to the expected future price of the resource.

User Cost

The cost of using a good or service, including the cost of foregone opportunities.

Nonrenewable Resource

A natural resource that cannot be replenished at a rate to match its consumption, such as fossil fuels or minerals.

  • Explain the importance and meaning of user cost within the field of natural resource economics.
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JR
Jordan RamseyMay 11, 2024
Final Answer :
A
Explanation :
The user cost of extracting a nonrenewable resource is the opportunity cost of using a resource now rather than preserving it for the future. As the resource becomes scarcer, the user cost increases because it becomes more expensive to extract the remaining resource, and the opportunity cost of using the resource now rather than preserving it for future use increases. Therefore, the user cost is inversely related to how much of the resource remains.