A Pareto-improved mode in resource-limited industry

Starting from the analysis on the existence of maximum marginal cost in most natural resources, the relationship between production mode and sustainable development of resources-limited industry has been discussed in this paper, within the framework of classical economic theory. An operable Pareto-improved production mode of ldquoalternation of using and reserving; production with limited outputrdquo has been proposed and demonstrated explicitly. To estimate above mode, the amended demand curve has been reasoned under the precondition of limited production, which is based on the Sluscky consumer utility function. Furthermore, the total social welfare as the well as producer profit and consumer utility have been analyzed mathematically.