Question

Traders expect the price of a nonrenewable natural resource to​ _____ at a rate equal to the​ _____. We call this idea the Hotelling principle. A. ​rise; interest rate B. ​fall; average total cost C. ​fall; interest rate D. ​rise; average total cost

Answer 1

A. ​rise; interest rate

Step-by-step explanation:

Hotelling principle explaining spatial competition was proposed by Harold Hotelling. The principle addresses a fundamental decision for an owner of a non-renewable resource that they prefer to keep the resource and hope for a better price in future.