Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole $1,000. The loan did not cost me anything. An oil refinery bought millions of barrels of oil four months ago for $80 per barrel, compared to $120 / barrel today. The cost of using those barrels of oil to produce gasoline today is still $80.
Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole $1,000. The loan did not cost me anything. An oil refinery bought millions of barrels of oil four months ago for $80 per barrel, compared to $120 / barrel today. The cost of using those barrels of oil to produce gasoline today is still $80.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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Agree or Disagree and Why: One year ago, I loaned a friend $1000 and he just paid me back the whole $1,000. The loan did not cost me anything. An oil refinery bought millions of barrels of oil four months ago for $80 per barrel, compared to $120 / barrel today. The cost of using those barrels of oil to produce gasoline today is still $80.
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