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Mairoon Mairoon
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Posts: 850
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7 years ago
Why is the price of a scarce exhaustible resource in a competitive market above the marginal cost of providing a unit of the resource?
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 74 times
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Replies
wrote...
7 years ago
Because the resource is scarce, the owner receives a rent. The addition of the rent increases the price above the marginal cost of providing the resource.
Mairoon Author
wrote...
6 years ago
Thanks. This is just start. Wink Face
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