Question
State Hotelling's Rule (or the Hotelling Principle) for
the extraction of a non-renewable resource. What is the economic significance of the "user cost" (or scarcity rent) in this rule?Solution
Solution: Hotelling's Rule (1931) states that the price of a non-renewable resource, minus the marginal cost of extraction (the net price, or scarcity rent/user cost), must grow at the rate of discount (r) for resource owners to be indifferent between extracting today and extracting tomorrow. The User Cost is the opportunity cost of using the resource today instead of saving it for future, more valuable use; its rising price reflects the increasing scarcity over time.
If 923 = 54, 781 = 56, 654 = 120, then 842 = ?
In each of the following questions which one of the answer figures shall complete the given question figure.
Select the figure from the options that can replace the question mark (?) and complete the given pattern.
Select the figure that can replace the question mark (?) in the following series.
In each of the following questions which one of the answer figures shall complete the given question figure.
Which answer figure will complete the pattern in the question figure?
Select an appropriate figure from the given four options that would replace the question mark ‘?’ in the following figure series.
Completion of incomplete Pattern
...
Which Answer Figure will complete the pattern in the figure?
Select the figure from the options that can replace the question mark (?) and complete the given pattern.
