Suppose an exhaustible resource can be sold only this period or in the next period. The marginal cost of extraction is constant and equal to $10. The next year price of the resource is $115, respectively. The interest rate is 5%. What is the minimum current price required to make the sale of the resource profitable in the current period?

GDP is

A) a perfect measure of the value of production. B) an imperfect measure of the standard of living. C) the only factor that affects our standard of living. D) a perfect measure of the standard of living. E) a measure which includes the value of all newly produced goods and services.

Consider an industry that is in long-run equilibrium. An increase in demand leads to no change in the price of the good. We know that this is

A) a decreasing cost industry. B) a constant cost industry. C) an increasing cost industry. D) not a competitive industry.