The price of crude oil during the period 2000-2010 can be approximated by P(t) = 6t + 18 dollars per barrel (0 ≤ t ≤ 10) in year t, where t = 0 represents 2000. Russia's crude oil production over the same period can be approximated by Q(t) = −0.08t2 + 1.2t + 5.5 million barrels per day (0 ≤ t ≤ 10). † Use these models to estimate Russia's daily oil revenue and also its rate of change in 2007. (Round your answers to the nearest $1 million.) daily oil revenue$ millionrate of change in 2007$ million per year

The price of crude oil during the period 2000-2010 can be approximated by P(t) = 6t + 18 dollars per barrel (0 ≤ t ≤ 10) in year t, where t = 0 represents 2000. Russia's crude oil production over the same period can be approximated by Q(t) = −0.08t2 + 1.2t + 5.5 million barrels per day (0 ≤ t ≤ 10). † Use these models to estimate Russia's daily oil revenue and also its rate of change in 2007. (Round your answers to the nearest $1 million.) daily oil revenue$ millionrate of change in 2007$ million per year

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4WNG

See similar textbooks

Similar questions

This year is expected to be a great one for selling walking shoes in Georgia. At very low prices, only the most efficient shoemakers are able to sell. There are two shoe producers that operate with the most cost-effective equipment and skilled personnel, each of which can put 1000 pairs of shoes in the market at $10.00. At a higher price, eight more shoemakers will enter the market. Each producer makes 1200 pairs of shoes at $25.00 per pair. If the price goes to $40.00 per pair, the existing firms increase production to 1400 pairs of shoes each, plus four small shops open, each of which produces 500 pairs of shoes. Using the information above, graph the supply curve for walking shoes.
Following Hotelling, we might expect the real price of nonrenewable resources to increase continually over time, as resource stocks are depleted. But empirical evidence for a number of nonrenewable (mineral) resources indicates that their prices over the past century have not been increasing monotonically. Instead the price paths for a number of nonrenewable resources have been “U-shaped”. Provide an explanation for what’s going on. i.e. resolve this apparent anomaly between theory and observation- why would the price of these resources be driven down instead of increasing as the theory predicts?
Consider the market for copper, where demand is given by the equation P(QD) = 500 - 1/2Q and market supply is given by P(Qs) = 50 + Q. The discount rate is r=10% and there is a fixed supply of 400 total units of copper. a. If there is just one period in this model, what would be the equilibrium market price and quantity sold? Show your work. Is the resource exhausted? b. Suppose instead that there are two periods, and that demand and supply are the same in both periods. Derive an expression for the marginal net benefit (MNB) of the resource in each period. c. Find the optimal allocation of copper between the two periods, and using the demand curves, find the price that would prevail in each period. d. How do your answers in part (c) change if the discount rate increases to 25%?
Consider an item that is ordered on a monthly basis. The daily demand for the item is200 and the lead-time for supply is 7 working days. A month consists of 25 workingdays. the cost of ordering is USD 100 per order and the cost ofcarrying inventory is USD 10 per unit per year of inventory.a. What will be the cost of the existing plan of ordering inventory?b. What will be the economic order quantity (EOQ)?c. What will be the new cost of the plan if the organization chose to order as perEOQ?
FOREST owners are seeing the best returns for years as a result of snaring a greater share of the huge Chinese market, but some Kiwi sawmills are running short of logs as a result. In 2009, log sales to China were worth about $530 million, more than double the $236m the previous year, and volumes were also more than double levels in 2008. Log prices remained at historically high levels of about US$145 a cubic metre for A grade logs delivered to China, according to a report from PF Olsen. ...the Timber Industry Federation warns that timber prices are likely to rise at least 10 per cent, after recent log price rises of up to 15 per cent. Prices for logs kept going up. China has become a key log market for New Zealand and log exports are "way up and forest owners are quite happy", one big forest company executive said. Another forest investor Roger Dickie, of Roger Dickie NZ, said the "log market has definitely improved, quite dramatically in the last few months" as a result of the…
FOREST owners are seeing the best returns for years as a result of snaring a greater share of the huge Chinese market, but some Kiwi sawmills are running short of logs as a result. In 2009, log sales to China were worth about $530 million, more than double the $236m the previous year, and volumes were also more than double levels in 2008. Log prices remained at historically high levels of about US$145 a cubic metre for A grade logs delivered to China, according to a report from PF Olsen. ...the Timber Industry Federation warns that timber prices are likely to rise at least 10 per cent, after recent log price rises of up to 15 per cent. Prices for logs kept going up. China has become a key log market for New Zealand and log exports are "way up and forest owners are quite happy", one big forest company executive said. Another forest investor Roger Dickie, of Roger Dickie NZ, said the "log market has definitely improved, quite dramatically in the last few months" as a result of the…
It is known that a certain company sells each kg of the product it manufactures at $80, it is also known that the total manufacturing cost "CT" is given by the function CT=(1/1000)x2 +100 , where "x" are the kg of product produced. a) How many units of "x" must the company sell to break even? Value = 100 points.b) How many units of "x" is the optimal quantity that should be sold to optimize the producer's profit? Value = 100 points.c) How many monetary units does that optimal profit for producers amount to? (remember, you will have to prove it mathematically either by the method of the first or by the method of the second derivative). Value = 100 points.
Please tell me, if what I found out is correct, about business and consumer confidence, regarding mining, in Chile, what can I add or change? Business confidence in mining can also have a significant impact on the industry and the economy in general. Here are some ways in which business confidence influences mining: Investments and exploration: When entrepreneurs are confident in the potential and profitability of the mining industry, they are more likely to invest in exploration and mine development projects. These investments are necessary to discover new mineral deposits, assess their viability and carry out the development and production stages. Business confidence drives investment in equipment, technology and labor necessary to carry out these activities. Development of mining projects: Business confidence also influences the development of large-scale mining projects. When entrepreneurs are confident in political stability, the regulatory framework, and long-term economic…
Improved methods of inventory control were supposed to reduce fluctuations in inventory stocks. It is clear that these methods have helped reduce the equilibrium inventory/sales ratios in both the manufacturing and trade sectors over the past decade. Yet we find that during the 2001 recession, inventory investment accounted for more than the total decline in real GDP, the first time that had happened since 1949. Explain whether this result is due to a set of odd coincidences, or whether the improved methods of inventory control actually caused bigger fluctuations in inventory investment relative to final sales.
Suppose that you are running a business, and you need some extra space for one year. Your bank offers you a loan of $200,000 at 0% interest. You consider borrowing this amount to buy the building, use it for one year, and then sell the building to pay back the loan. Unfortunately, the economy in which you are operating is experiencing deflation at the rate of 10% per year. After one year, you should be able to sell the building for___________. Suppose that owning the building for a year would earn you $12,000. To decide whether you will be better off by owning it for one year and then selling it, you seek advice from three different people: (1) Your brother says that you should not buy the building because in one year it will cost you $200,000. (2) Your accountant says that you should definitely buy the building because you can borrow $200,000 at zero interest while the building will generate $12,000 in extra income. Then when you sell it, you will be $12,000 richer. (3) Your…
“The oil Price run-up of 2007-08 was caused by strong demand confronting stagnating world production. Although the causes were different, the consequences for the economy appear to have been very similar to those observed in earlier episodes, with significant effects on overall consumption spending and purchases of domestic automobiles in particular. The experience of 2007-08 should thus be added to the list of recessions to which oil prices appear to have made a material contribution.” Source: Hamilton, J.D., 2009. Causes and Consequences of the Oil Shock of 2007-08 (No. w15002). National Bureau of Economic Research. a) Oil price shocks have an evident impact on the short run aggregate supply curve. With the help of a graph demonstrate how rising oil prices affect the SRAS and explain what other factors can cause this shift. b) Different theories…
Let the demand and the supply functions for a particular commodity satisfy Qdt =22−3Pt and Qst =−2+Pt−1 where Pt denotes the market price in period t. a) Find the general solution Pt. b) Find the (steady-state) equilibrium price level, and analyze whether it is stable or not.