Economics Marginal Utility Questions
The relationship between marginal utility of natural resources and resource extraction is that as resource extraction increases, the marginal utility of natural resources tends to decrease. This is because as more resources are extracted, the availability of these resources decreases, leading to a decrease in their marginal utility or satisfaction derived from consuming or using them. As a result, the cost of extracting additional resources tends to increase over time, as the remaining resources become more difficult to access or are of lower quality. This relationship highlights the importance of sustainable resource management and the need to consider the long-term implications of resource extraction on both economic and environmental factors.