What Is Marginal Resource Cost?
To understand marginal user costs, we must first understand user costs. User cost and marginal user cost are an important concept of resource scarcity in different periods of resource economics research. The scarcity of resources in economics has two meanings: one is the physical scarcity and economic scarcity of natural resources; the other is that if there are several possible competing needs for a resource, It is "scarce" [1].
Marginal user cost
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- Chinese name
- Marginal user cost
- First understand
- User cost
- Cost
- Resource economics
- In economics
- Scarcity of resources
- To understand marginal user costs, we must first understand user costs. User cost and marginal user cost are an important concept of resource scarcity in different periods of resource economics research. The scarcity of resources in economics has two meanings: one is the physical scarcity and economic scarcity of natural resources; the other is that if there are several possible competing needs for a resource, It is "scarce" [1].
- Natural resource user costs refer to the costs incurred by using resources now rather than leaving them to future generations. The marginal user cost refers to the corresponding change in the total user cost caused by the unit change in the quantity of natural resources. The premise of user cost is the scarcity of natural resources.
- From the perspective of the econometric model, the user cost of natural resources is the Lagrangian multiplier for the optimal dynamic allocation of scarce resources between different periods. The calculation methods of the marginal user cost of natural resources are: inverse algorithm, dynamic method and substitution method. [2]