In reality,prices of non-renewable resources have not increased continually according to the model developed in Section 16.3 because of
A) abundance of the resource.
B) technological progress changing marginal cost.
C) changing market power of producers.
D) All of the above.

Question

Quizplus · Accepted Answer

The prices of non-renewable resources like oil and gas depend on various factors. While scarcity and demand for the resource play a role in determining its price, other factors such as technological advancements, changes in market power of producers, and government policies can also have an impact. For example, the development of fracking technology has significantly changed the marginal cost of producing shale gas, which has led to a decline in its price. Similarly, changes in market power due to mergers and acquisitions or fluctuations in supply and demand can also affect prices. Therefore, all of the above factors can contribute to the fluctuation of non-renewable resource prices, making option D the correct answer.

In Reality,prices of Non-Renewable Resources Have Not Increased Continually According