The long-run downward trend in commodity prices is consistent with the idea that:
a. We are quickly running out of resources.
b. Resource demands have been increasing faster than resource supplies.
c. Birthrates will soon increase due to the falling cost of living.
d. Resource supplies have increased faster than resource demands.
2. It would cost the town of Irondale $50 million to build a gas-powered generator that could produce a maximum of 5 megawatts of electricity at 15 cents per hour. Another alternative would be for Irondale to build a $100 million coal-fired generator that could produce a maximum of 15 megawatts of electricity at 5 cents per hour. Irondale should:
a. Build the coal-fired generator because its hourly operating costs are so much lower.
b. Build the gas-powered generator since it is less expensive to build.
c. Build the coal-fired generator because, while it would cost twice as much to build, it would produce three times as much electricity.
d. Obtain more information before deciding what to do.
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