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

-The marginal cost of extraction of a nonrenewable resource increases with passage of time because:

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
 
-The marginal cost of extraction of a nonrenewable resource increases with passage of time because:

Quizplus · Accepted Answer

The marginal cost of extraction of a nonrenewable resource increases with passage of time because the resource gradually becomes scarce. As the resource becomes scarcer, it becomes more difficult and expensive to extract, leading to a higher marginal cost.

The Figure Given Below Represents an Imperfectly Competitive Resource Market