The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-If the owner of a nonrenewable resource expects his profits to be high in future, he will abstain from resource extraction in the present period.

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-If the owner of a nonrenewable resource expects his profits to be high in future, he will abstain from resource extraction in the present period.

Quizplus · Accepted Answer

If the owner expects higher future profits, they may choose to conserve the resource now to sell it at a higher price later, maximizing their overall profit.

The Figure Given Below Represents an Imperfectly Competitive Resource Market