Which of the following would cause the present optimal extraction level of a nonrenewable resource to fall?

Question

Quizplus · Accepted Answer

A reduction in the price of the resource would cause the present optimal extraction level of a nonrenewable resource to fall because it would decrease the profitability of extracting the resource now as opposed to later, leading to a preference for leaving more of the resource in the ground for future extraction when prices might be higher.

Which of the Following Would Cause the Present Optimal Extraction