Question

Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay extraction until a future time. Projections indicate that the price of natural gas is expected to fall in the future. What would you do in the present?

Answer 1

Answer:

sell as little natural gas as possible in the present and delay extraction until the future- reflected by a leftward shift of the current supply curve.

Explanation:

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