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

-Anything that affects the marginal revenue product of a nonrenewable resource will affect the demand for that resource.

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
 
-Anything that affects the marginal revenue product of a nonrenewable resource will affect the demand for that resource.

Quizplus · Accepted Answer

The marginal revenue product is a key determinant of the demand for a nonrenewable resource in an imperfectly competitive market. Any factor that affects this marginal revenue product will ultimately affect the demand for the resource. Thus, the statement is true.

The Figure Given Below Represents an Imperfectly Competitive Resource Market