Indicate whether the following statement is true, false, or uncertain, and illustrate your answer using a set of graphs similar to those in Figure 14.6: If the marginal cost of extraction increases over time and the marginal benefit curve is the same for each period, then the undiscounted net marginal benefit decreases over time and the resource price must rise in order for marginal rents to rise.

Figure 14.6

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$ per Unit Net Marginal Benefit Period 1 Consumption MC Ps Marginal Extraction Cost+ Marginal Opportunity Cost Oil Consumption in Period 1 Net Marginal Benefit in Period 1 (NMB) NMB Discounted NMB; Marginal Extraction Cost Marginal Benefit Qc Qs QA Period 2 Dynamically Efficient Division Fixed Quantity of Oil Consumption