Ask Question
BusinessBusiness
19 September, 08:58

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 user costs. Assume that each well can produce 100 barrels of oil per day. How much oil will be produced if the market price of oil is $9 per barrel?

+5
Answers (1)
  1. 19 September, 10:49
    0
    From the information given in the question, producer A will be only producer that can produced the oil if oil market price is $9/barrel as producer B and C will not cover the extraction cost at this price. Hence, only 100 barrel oil is produced

    Explanation:

    Given dа ta:

    Extraction cost of oil producer A = $8

    Extraction cost of oil producer B = $10

    Extraction cost of oil producer C = $12

    Total production of oil per day = 100

    From the information given in the question, producer A will be only producer that can produced the oil if oil market price is $9/barrel as producer B and C will not cover the extraction cost at this price. Hence, only 100 barrel oil is produced
Know the Answer?
Not Sure About the Answer?
Get an answer to your 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 user ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Taylor inc., the company you work for, is considering a new project whose data are shown below. what is the project's year 1 cash flow
Answers (1)
During an exit interview, a manager discovers that the reason an employee is resigning is because of unlawful harassment from a co-worker.
Answers (2)
In a deposits-only monetary system (people hold no currency) with a 5% required reserve ratio, a bank deposit of $1,000 will increase the total value of the money supply by:
Answers (1)
Caroline is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Each hour she spends swimming is an hour that she can't spend biking or running.
Answers (1)
Problem 13-46 (LO. 6) In 2018, Maria records self-employed earnings of $135,000. Using the format illustrated in the text, compute Maria's self-employment tax liability and the allowable income tax deduction for the self-employment tax paid.
Answers (1)
New Questions in Business
Advertisements for high-style clothing and cosmetics usually promise that their products will enhance the consumer's exclusive or distinctive character and set him or her apart from others. This is an appeal to which American core value?
Answers (1)
The pre-tax cost of debt for a firm: is based on the yield to maturity on the firm's outstanding bonds. is equal to the coupon rate for the latest bond issue. is equivalent to the current yield on the outstanding bonds of the firm.
Answers (1)
Macy Corporation's relevant range of activity is 8,100 units to 16,500 units. When it produces and sells 12,300 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 Direct labor $ 3.
Answers (1)
ABC Co. expects to sell 2,200 units, give or take 10 percent. The expected variable cost per unit is $8.43 and the expected fixed costs are $9,500. Cost estimates are considered accurate within a plus or minus 5 percent range.
Answers (1)
Values are beliefs you are born with.
Answers (1)
Home » Business » 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 user costs. Assume that each well can produce 100 barrels of oil per day.
Sign Up Forgot Password?