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
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.
