Asked by Abigail Aleman on Apr 28, 2024

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The user cost of nonrenewable resources is

A) the current cost of extracting and selling the resource.
B) the future cost of extracting and selling the resource.
C) the opportunity cost of extracting and selling the resource today instead of in the future.
D) the cost of future extraction and sale of a resource instead of current extraction and sale.

User Cost

The cost of using a durable good or asset, which includes depreciation, interest lost on funds used to buy the asset, and maintenance costs.

Nonrenewable Resources

Natural resources that cannot be replenished within a human lifetime, such as fossil fuels or minerals.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

  • Recognize the importance of user costs in the economics of nonrenewable resource extraction.
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DC
Daniel CastroApr 30, 2024
Final Answer :
C
Explanation :
The user cost of nonrenewable resources is considered the opportunity cost of extracting and selling the resource today instead of in the future. This reflects the lost future value or benefits that could have been obtained by keeping the resource in the ground and using it later when it might be more valuable or scarce.