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[10]: 143 Simon's theory of resource development actually predicts some of the aforementioned trends, which do not in and of themselves even qualify as costs (unlike pollution). E.g., he pointed out that, due to increased efficiency, the amount of cropland required and actually used to grow food for each person has decreased over time and is ...
People queue up for soup and bread at relief tents in the aftermath of the Great Seattle Fire of June 6, 1889. In economics, scarcity "refers to the basic fact of life that there exists only a finite amount of human and nonhuman resources which the best technical knowledge is capable of using to produce only limited maximum amounts of each economic good."
Scarcity rent is one of two costs the extraction of a finite resource imposes on society. The other is marginal extraction cost--the opportunity cost of resources employed in the extraction activity. Scarcity rent is the cost of "using up" a finite resource because benefits of the extracted resource are unavailable to future generations.
Because productive resources are scarce, the resources must be allocated to various industries in just the right amounts, otherwise too much or too little output gets produced. [2] When drawing diagrams for businesses , allocative efficiency is satisfied if output is produced at the point where marginal cost is equal to average revenue.
The origin of the term refers to gaining control of land or other natural resources. [7] Georgist economic theory describes rent-seeking in terms of land rent, where the value of land largely comes from the natural resources native to the land, as well as collectively paid for services, for example: State schools, law enforcement, fire ...
OPEC is an example of an organization that has market power due to control over scarce resources – oil. Increasing returns to scale. Firms that experience increasing returns to scale also experience decreasing average total costs and therefore become more profitable with size and higher demand levels.
If there is an increase in demand for the goods, the company will not be able to meet the demand because of the availability of resources. Thus, it will increase the prices of the resources, leading to a corresponding increase in the price of the producer goods. [29] For example, Petrol is a natural resource, and thus it is scarce.
A common pool resource however is often managed the group of people that have access to that resource [14]. Examples of this can be air, water, sights, and sounds. Tragedy of the commons refers to this title. An example would be unregulated forests as there's limited resources available and therefore rivalrous, but anyone may access these ...