An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record high for onshore energy lease sales in the lower 48 states
What is going on in the rental market for land? A) There is a decrease in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate.
B) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to a decrease in the equilibrium rental rate.
C) There is an increase in the supply of acreage on the Roan Plateau, leading to an increase in the equilibrium rental rate.
D) There is an increase in the value of marginal product for an acre on the Roan Plateau, leading to an increase in the equilibrium rental rate.
D
You might also like to view...
Refer to Figure 7-2. Marginal private benefit is represented by which curve?
A) D2 B) Supply C) D1 D) All of the above represent marginal private benefit.
All else constant, an increase in the amount of borrowing by the federal government would reduce the amount of money available for businesses to borrow to finance investment spending
Indicate whether the statement is true or false