Whatever the reason, so long as the marginal extraction cost is not determined directly by the cumulative amount of the resource extracted, the result would be that net price, i.e., price …
The difference between price and the marginal extraction cost (MEC) is known variously as the user cost, royalty, rent, net price, or marginal profit. We will use rent, consistent with the …
(PDF) Confuser Cost - ResearchGate
Jul 12, 2007 · The terms “royalty”, “marginal user cost”, and “scarcity rent” are often used interchangeably in resource economics, resulting in considerable confusion.
The optimal price of the resource will now be given by the sum of the marginal extraction cost of the resource and the marginal user cost (also referred to as royalty or the resource rent which …
In 1931, Harold Hotelling introduced the Hotelling rule—the fundamental theoretical principle of non-renewable resource economics in respect of Conditions for Optimal Depletion or …
When the price of a non-renewable resource rises high enough we might expect demand to go to zero as another cheaper substitute is available. This is called a backstop.
Whatever the reason, so long as the marginal extraction cost is not determined directly by the cumulative amount of the resource extracted, the result would be that net price, i.e., price …
ECON 308 Notes - Chapter 5
Consumption in the present is justified if marginal net benefit in the present is greater than the user cost
External costs or externalities are costs that are incurred, in this case, in the process of extracting a natural resource, but which are not borne by the extracting rm itself. These costs may be …
In addition to synthesising the literature results on the dynamics of resource scarcity, the hypothesis of non-monotonic scarcity rent can provide a partial explanation for the commonly …