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The Long-Run Behavior of Natural Resource Prices
Observations
– Exhaustion of copper has increased by a hundred fold from 1880 through 1998 signifying a large increase in demand.
– The actual price for copper has stayed relatively constant.
Changes in Market Equilibrium
Conclusion
– Reduction in the costs of production have increased the supply by more than enough to balance the increase in demand.
#question.theories of cost
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