Which answer summarizes Hotellings Rule? O a. A monopoly market leads to a decrease in scarcity rent of renewable resources. O b. Competitive market forces lead to increase in the interest rates for finite, exhaustible resource. O c. Competitive market forces lead to a decrease of scarcity rent of a finite, exhaustible resource that equal the interest rate. O d. Competitive market forces will lead to an increase in scarcity rent of a finite, exhaustible resource that increases at the interest rate.

Which answer summarizes Hotellings Rule? O a. A monopoly market leads to a decrease in scarcity rent of renewable resources. O b. Competitive market forces lead to increase in the interest rates for finite, exhaustible resource. O c. Competitive market forces lead to a decrease of scarcity rent of a finite, exhaustible resource that equal the interest rate. O d. Competitive market forces will lead to an increase in scarcity rent of a finite, exhaustible resource that increases at the interest rate.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.7P

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