Suppose you have three producers of oil A, B, and C, with extractionscosts of $8, $10, and $12 per barrel of oil. Assume there are noadditional user costs. Assume that each well can produce 100 barrels ofoil per day. How many barrels of oil will be produced if the market priceof oil is $10 per barrel ?O 100200300 Suppose you have three producers of oil A, B, and C, with extractionscosts of $8, $10, and $12 per barrel of oil. Assume there are noadditional user costs. Assume that each well can produce 100 barrels ofoil per day. How many barrels of oil will be produced if the market priceof oil is $11 per barrel ?O 100200300

The market cost is the current cost at which a resource or administration can be traded. The market…

s of $8, $10, and $12 per barrel of oil. Assume there are no tional user costs. Assume that each well can produce 100 barrels of er day. How many barrels of oil will be produced if the market price is $10 per barrel ?

s of $8, $10, and $12 per barrel of oil. Assume there are no tional user costs. Assume that each well can produce 100 barrels of er day. How many barrels of oil will be produced if the market price is $10 per barrel ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: John is planning to retire in 15 years. Money can be deposited at 8% compounded quarterly. What…

A: Given Semiannually Withdrawal = 25,940 Interest rate = 8% compound quarterly

Q: How can we conserve natural resources and sustain our environment?

A: Though natural resources are available in free but they also tend to finish.

Q: Use the World View to answer the questions. Be sure to spell the country correctly. WORLD VIEW…

A: Information regarding real growth, inflation and unemployment is given about six countries.…

Q: # 1 .A company has a production capacity of 200 units per 200 units per month and its fixed costs…

A: Break Even Quantity (BEQ) is a level of production that covers the cost of production while leaving…

Q: rom March 2003 until October 2007 the S & P stock index, a broad measure of stock market prices,…

A: The interest rate impacts inflation by implication by means of homegrown interest for labour and…

Q: Long Run: Draw a long run aggregate supply curve. Draw an aggregate demand curve and label it ADI.…

A: Concept Price can alter along the LRAS, but output cannot since it reflects full employment output.…

Q: What are the best decision-making strategies for a firm that relocates in an underdeveloped country?

A: An economy that is undeveloped is one that is characterized by. Low per capita GDP.Maybe less than…

Q: Draw the business cycle diagram correctly labeling the axes, expansion, peak, contraction, and…

A: The business cycle refers to the cycle representing the economy-wide fluctuations that take place in…

Q: Parts d and e refer to a single-price profit-maximising monopolist whose demand curve and total cost…

A: Answer: Given, Price function (or demand function): P=AQ-0.5 Total cost function: TC=10+0.75Q (d).…

Q: If the food retail price rises faster than the farm value, then farm-to-retail price spread will 1.…

A: Food retail price is the price of the goods and commodities at the retail outlets paid directly by…

Q: Meow Chow sells cat food in a perfectly competitive market and has the following cost curves:…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: A bond pays $5000 in 25 years an earns an annual interest rate of 4.75%. What is the bond's price?…

A: Compound interest Compound interest is return both on principal and interest that refers to a…

Q: when can we say that fiscal policy succeeded and where/ when can we say that fiscal policy has…

A: Fiscal policy refers to the actions used by governments to stabilize the economy, particularly…

Q: Compare between the corporation and the joint stock company and compare between the LLC and the…

A: In certain ways, a corporation and a joint stock company are different. A corporation is founded by…

Q: Identify the five pricing policy decisionsmarketers must make

A: Pricing policy decisions are the end step for a marketer in a production process. After that the…

Q: Explain how strategic alliances are a substitute for exploiting economie

A: Economies of scope exist when it is gainful for an association to extend its product offering and…

Q: Modified True or False: State whether each statement is true or false. If the statement is false,…

A: In long run, if price is below average total cost, it means the firm is not able to pay to its…

Q: In which of the following markets do you expect efficient outcomes? Explain your position. Your…

A: In a market, if the Marginal Cost and Marginal benefits are same this situation is reffered as…

Q: graphically explain the effects of an increase in non-labour income to labour supply.

A: Labor supply is an upward sloping curve because with the increase in wages, the supply of labor…

Q: Zambian banks have been using the Basel I framework for purposes of determining regulatory capital.…

A: Answer a. A credit rating agency that is registered or certified in accordance with Regulation (EC)…

Q: he marginal product of the 14 th worker is 8 and the firm sells its output for $4 per unit. If labor…

A: MP of 14th worker = 8 Output sell = $4 per output

Q: In general equilibrium, when one of the firms producing goods is a monopolist, it charges price that…

A: The monopolists maximize their profit by producing the quantity at the level where MR = MC. At this…

Q: microeconomics help please 24. Consider adverse selection in the car insurance market. Drivers are…

A: Given, Probability of safe drivers, Ps=50%=0.5 Probability of risky drivers, Pr=50%=0.5 Cost of…

Q: explain why there's a correlation between the global city and the poor

A: A global city refers to a city that has significant competitive advantages and functions as a hub…

Q: Break-Even Point The break-even point for a company is where costs equal revenues. Therefore the…

A: In short run, each and every firm focus to recover variable cost and ready to bear fixed cost .

Q: Draw a macro equilibrium using AD/AS. Clearly label all important points on your graph.

A: The AD-AS model is a graphical model for analyzing economic swings that comprise AD (aggregate…

Q: 7. True or False: The certainty equivalent of a risk averse person is smaller than the expected…

A: Q7. Risk Averse is a person or investor who opt for guaranteed options rather than options in which…

Q: 15. Lorenzo lives on x and y alone. His utility function is U(x, y) = min{3x + 4y, 7y}. The prices…

A: Complementary goods refers to the goods that can be used together. These goods have a minimum…

Q: Chevy sells the Corvette for $60k - $80k, yet some research unveils that it costs little over $25k…

A: Goods such as sports cars, luxury watches, designer jewelry, etc are considered as Veblen goods.

Q: It describes a game of Chicken. 2 rebellious Teen drivers (Spike and Henry) face each other on a…

A: Game 1: Best Response of Henry: Swerve when spike don't swerve as payoff is more ( -15 >-50)…

Q: Elasticity & Total Revenue Please fill-in the empty cells in the table below. Explain the…

A: Elasticity of demand is the ratio of %change in Qd(quantity demanded) and %change in P(price) of the…

Q: our nephew and his college friends are starting a junk-hauling business. You advise them not to base…

A: In this question, nephew and his college friends are starting a junk-hauling business and in this…

Q: Your boss asks you to calculate the selling price of a good such that the profit margin is 34%. The…

A: Profit margin is one of the most widely used profitability statistics to determine how profitable a…

Q: The state of New Jersey has in circulation (as of 2011) an instant lottery game called $1,000…

A: Given information: The given information depicts the frequency of distribution of prizes and winning…

Q: The joint cost, in dollars, for two products is given by C(x, y) = xVy2 + 11. (Round your answers to…

A: Marginal cost is the cost of additional unit produced . To find the marginal cost we need to take…

Q: 0.02q + 5q - 38 Suppose the Sunglasses Hut Company has a profit function given by P(q) where q is…

A: Profit Function : P(q)=-0.02q2+5q-38 (a) For Marginal Profit, we differentiate the profit function…

Q: If the economic order quantity 600 units, annual demand 9,000 units, and order costs $30 per order,…

A: The expenses of retaining unsold goods are referred to as holding costs. These charges, together…

Q: Bo's Donuts decides to have a sale to raise revenues. Bo lowers the price of each donut by 10%.…

A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: Consider the simple economy that produces only three products. Use the information in the folding…

A: The market basket consists of 1 haircut, 7 hamburgers, and 6 movies. Consumer price index (CPI) =…

Q: 3) Suppose Joe's utility for lobster (L) and soda (S) can be represented as U = = L0.5 s MU =0,5…

A: Answer; For Joe, MRSL,S = MUL/MUS = S/L The equation of his budget line can be represented as…

Q: a) Determine: Price of Equilibrium_ and Quantity of Equilibrium b) Determine the effect of $60 Price…

A: Market equilibrium occurs where the Quantity Demanded = Quantity Supplied, that amount of quantity…

Q: Oil prices doubled since January 2021, from $50 per barrel to $100 per barrel. Use a graph to show…

A: Answer: If the price of oil rises from $50 per barrel to $100 per barrel then the budget line will…

Q: "Macroeconomics is the study of economic activity at the aggregate level, examining the entire…

A: (1 The four key macroeconomic issues are as per the following:- Business and joblessness…

Q: In one paragraph, concisely explain the historical connection between evolutionary biology and long…

A: Evolutionary economics influences both mainstream economics and a heterodox school of economic…

Q: Your friend Stan owns a coffee shop in a monopolistically competitive industry. One day, Stan tells…

A: Every firm in the market works with the goal of profit maximization.

Q: The Rational Rule for Sellers involves applying only the marginal principle. O only the opportunity…

A: Marginal Principle states that in micro economics, the rational consumers think at the margin, be it…

Q: Question 6 Standard macroeconomic theory predicts that if firms become more optimistic about future…

A: The branch of economics that deals with studying the overall economy as a whole including economic…

Q: Suppose that banks are less able to raise funds and so lend less. Consequently, because people and…

A: A financial crisis is when monetary instruments and resources decline fundamentally in esteem. Thus,…

Q: Civil engineering consulting firms that provide services to outlying communities are vulnerable to a…

A: In economics and finance, present value, also known as present discounted value, is the value of an…

Q: what are the socialism and communism systems?

A: Socialism and communism are economic systems.

Question

Suppose you have three producers of oil A, B, and C, with extractions
costs of $8, $10, and $12 per barrel of oil. Assume there are no
additional user costs. Assume that each well can produce 100 barrels of
oil per day. How many barrels of oil will be produced if the market price
of oil is $10 per barrel ?
O 100
200
300

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assume that a country is endowed with 8 units of oil reserve. There is no oil substitute available. How long the oil reserves will last ifa) the marginal willingness to pay for oil in each period is given by P=8-0.57q. (b) the marginal cost of extraction ofol s constant at $4 Per unit and c) discount rate is 1%?
A company manufactures Products A, B, and C. Each product is processed in three departments: I, II, and III. The total available labor-hours per week for Departments I, II, and III are 1020, 1080, and 900, respectively. The time requirements (in hours per unit) and the profit per unit for each product are as follows. Product A Product B Product C Dept. I 2 1 2 Dept. II 3 1 2 Dept. II 2 2 1 Profit $18 $12 $15 If management decides that the number of units of Product B manufactured must equal or exceed the number of units of products A and C manufactured, how many units of each product should the company produce to maximize its profit?
Address the following: a) Suppose that the allocation of a natural resource during three years results in a stream of total surplus value of $100 per period t (i.e.: t = 0; 1; 2). Obtain the present value of this stream when the discount rate is r = 0.10 and also when it is r = 0.05. b) Alternatively, the resource could be fully extracted now (say, in the period t = 0), resulting in a total surplus $280 at t = 0 and 0 in every future period. Is this immediate extraction strategy preferred to the extraction strategy described in (a) when r = 0.10? What about when r = 0.05? What does this tell us about the intuitive meaning of discounting regarding intertemporal preferences c) Explain what it means that a resource allocation is dynamically efficient
1. Is scarcity of nonrenewable resources a major problem? What kinds of physical and economic measures are relevant to understanding this issue, and in what ways can some of the measures be misleading? What do you think are the main issues relating to nonrenewable use? 2. Do you expect mineral prices to continue to increase, as shown in Figure 11.4? Which factors do you think will determine future mineral prices?
Explain why non-use, or passive use values, cannot be valued either by observing their prices in markets or with revealed preference techniques. Finally, explain how stated preference techniques can be used to estimate non-use value.
Assume there are two periods: today (0) and tomorrow (1) and that,after tomorrow the world comes to an end. Further assume there are 10 barrels of oilin the ground. Let the total benefits in each period be given as: B(qt) = 10qt−0.5qt2and the total cost of extracting the oil in each period be 2qt. If the discount rate is10%. Suppose that we use up all the oil in the ground over the two periods.(a) Find the net benefits in each period.(b) If a social planner wants choose a level of output q for periods t = 0and t = 1 so as to maximize the discounted sum of net social benefit over bothtime periods, what is the optimal allocation of output over the two periods?(c) Obtain the prices for the two periods, i.e., p0 and p1.(d) Find the royalty in each period. Show that, the discounted value of the royaltyin each period is the same and it is equal to the shadow price of oil (λ).(e) Verify the Hotelling rule (i.e., show that the growth rate of theroyalty is equal to the discount rate).(f)…
Suppose we alocate a foxed supply of a depletable resource between two periods in a dynamically efficient way. Assume further that the demand function is constant in the two periods and the marginal willingness to pay is given by the formula P= 7-0.46q while the marginal cost is constant at $1 per unit. The total supply ls 18 units and the discount rate is 2%. What is the marginal user cost during the first period?
If consumption is $30,000 when income is $40,000, and consumption increases to $34,000 when income increases to $45,000, the MPC is Select one: O a. None of the options O b. 0.8 O c. 0.2 O d. 0.4
There exists 3000 tons of a non-renewable resource (q). Demand is given by P=800−0.25q where P is price. Marginal cost is constant and equal to 200. Assume there are two choices: either to mine the resource today (period 0) or in the next period (period 1). Assume a discount rate of 3%.For each question state: 1.How much will be mined in period 0 and 1, respectively? 2.What is the increase in price in percent between the periods?
There exists 3000 tons of a non-renewable resource (q). Demand is given by P=800−0.25q where P is price. Marginal cost is constant and equal to 200. Assume there are two choices: either to mine the resource today (period 0) or in the next period (period 1). Assume a discount rate of 3%. a.Assume perfect competition (i.e. P=MR)b.Assume now that MC also increases over time. Say to 300 in period 1. What are the answers then?For each question state: How much will be mined in periods 0 and 1, respectively? What is the increase in price in percent between the periods? c.Again assume constant MC=200. What would happen if there was a monopoly instead?
The marginal benefit of being able to emit a ton of sulfur dioxide emissions for two firms are given by:MBX = 1000 – ( Ex / 2 )MBY = 600 – ( Ey / 3 ) Note that these marginal benefit figures can be interpreted as marginal cost of abating emission down to levels Ex and Ey.Government regulators want to reduce total sulfur dioxide emissions to a total of 1800 tons.a) If the government imposes the same standard of 900 tons maximum emissions on both firms what would be the total cost of abatement (calculated as the aggregated marginal benefits forgone)? b) If the government distributed 900 tradable pollution permits (one ton each) to each firm what would be the final allocation of these permits after the firms trade them?c) What would be the total cost of abatement in this latter case?
Given - Qd=525−3pQs=265+2pTC=23Q2+150Q A)What is the equilibrium price and quantity? B)What is the new equilibrium price if there is 5 peso tax per unit? C)What is the new equilibrium if there is a 2 peso subsidy per unit? (no tax applied here) D)Solve for Price and Quantity that maximizes profit. What is the max profit? E)What are the break-even quantities?