What is meant by the user cost of producing an exhaustible resource? Why does price minus extraction

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What is meant by the “user cost” of producing an exhaustible resource? Why does price minus extraction cost rise at the rate of interest in a competitive market for an exhaustible resource?

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Question Posted: Dec 22, 2015 02:33 AM

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What is meant by the user cost of producing an exhaustible resource? Why does price minus extraction

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In addition to the marginal cost of extracting the resource and preparing it for sale there is an ad...View the full answer

Microeconomics

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