What is a depletable resource?
What is a depletable resource?
A resource the stock of which decreases whenever the resource is being used and does not increase over the timescale relevant for economic decision-making. Examples include deposits of coal, oil, or minerals.
Why might the marginal extraction cost of a resource be increasing?
Marginal user cost increases because of increasing opportunity costs. (We have taken resources that could have been available to the future generation!) Additionally, it rises at the rate of discount (r) in an efficient allocation to preserve the balance between present and future consumption.
What is the marginal cost of extraction?
Marginal Extraction Cost: The MEC is constant at $2 throughout the life of the resource. Marginal User Cost: The MUC increases with the time period since the depletable resource becomes more valuable to future generation as the scarcity rises.
Are exhaustible and non-renewable resources same?
Non-renewable sources of energy are those which cannot be replaced back in the same amount in nature again. Examples – Coal, water, petroleum etc. b) Exhaustible source of energy is the one which will get over or get exhausted with usage over a period of several hundred years of time.
What do you understand by non-renewable resources?
Renewable and nonrenewable resources are energy sources that human society uses to function on a daily basis. This means that nonrenewable resources are limited in supply and cannot be used sustainably. There are four major types of nonrenewable resources: oil, natural gas, coal, and nuclear energy.
Is tooth extraction oral surgery?
Surgical Tooth Extractions When a dentist has to make a surgical incision in the gums, it’s considered a surgical tooth extraction, or oral surgery. This is sometimes necessary due to: Irreparable damage to a tooth below the gum line, such as deep decay or fractures.
How can business prevent depletion of resources?
- Controlling Deforestation.
- Reducing oil, mineral, and material consumption.
- More exploration and use of renewable sources of energy.
- Protecting wetlands and coastal ecosystems.
- Sensitization and awareness creation.
How do you calculate marginal user cost?
Marginal user cost (MUC) in an efficient market equal the difference between the price (given by the demand curve) and the marginal extraction cost (MEC).
What is exhaustible and non exhaustible?
Exhaustible resources are those that will get used up and never reused. Example :fossil fuels. Non exhaustible resources are those that will not get used up completely. Example :sunlight.
What are the 5 main types of non renewable energy?
There are four major types of nonrenewable resources: oil, natural gas, coal, and nuclear energy. Oil, natural gas, and coal are collectively called fossil fuels.
How can we manage non renewable resources?
Conservation of nonrenewable resources:
- Resource waste should be avoided.
- When not in service, shutting off fans, lamps, and coolers, using cooking gas economically, using pressure cookers, using tube lights instead of electric bulbs are some of the ways to save non-renewable energy that might benefit to a large degree.
What happens in Chapter 6 of the resource allocation?
Chapter 6: Depletable Resource Allocation: The Role of Longer Time Horizons, Substitutes, and Extraction Cost •Introduction •A Resource Taxonomy •Renewable, Recyclable and Depletable resources •Efficient Intertemporal Allocations •Market Allocations of DepletableResource
What are the examples of depletable resources?
1.A depletableresourceis not naturally replenished or is replenished at such a low rate that it can be exhausted. (Fossil Fuels) –The depletion rate is affected by demand, and thus by the price elasticity of demand, durability and reusability. • Examples: –Energy Resources: Oil, natural gas, uranium, coal etc.
What is the value of resource allocation programmes?
The value of resource allocation programmes is in meeting organisational objectives. The relationship between resources and strategy is a two-way street. The strategy determines which resources are required, but the availability of resources can also limit a strategy.
Why is it so hard to allocate resources efficiently?
Efficiently allocating resources to the right places is complex and often hampered by a number of factors, including scarcity, financial criteria, organisational politics, ambiguous objectives, risk aversion, and a lack of knowledge and information. We mentioned that resources are production factors.
