ECO 2118 Study Guide - Final Guide: Shortage, Market Price, 1Mc
11 Dec 2015
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Document Summary
Least cost of achieving a target occur when: mc1=mc2. Find present value of ,100 tomorrow, at a discount rate of 12% Reflects wtp for a resource they"ll never use. Bequest: concerned with future generation"s ability to use resource. Existence: concerned with the resource"s simple future existence. If it maximizes the pv of net benefits p1 mc= p2 mc. Mineral resources whose quality, quantity, and location are known. Quantity and quality of resource estimates are within a 20% margin of error. Quantity and quality of resource have only been estimated parted from sample analyses. Unspecified amounts of resource surmised to exist based on geological knowledge. Undiscovered materials that may occur in either known types of deposits in favorable geological settings where no discoveries have been made, or unknown types of deposits yet to be recognized. Reserves that are known and profitable to extract at current prices. Lies somewhere between current reserves and the resource endowment.
