What are Marginal Cost, Marginal Extraction Cost and Marginal User Cost in terms of environmental economics?
Environmental economics is a branch of economics that is focused on the economic implications of environmental issues, such as energy alternatives and externalities related to the extraction of natural resources.
Answer and Explanation:
The marginal cost is the additional cost of an additional unit of a good or service produced. In environmental economics, marginal cost is broken down into the marginal extraction cost and the marginal user cost. The marginal extraction cost is the cost associated with the extraction of a natural resource while the marginal usage cost is the cost associated with using that natural resource once it is extracted.
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Learn more about this topic:
from DSST Environmental Science: Study Guide & Test PrepChapter 6 / Lesson 13