The marginal-cost curve for producing crude oil is _________ sloped, reflecting variation in the cost of extracting
Question:
The marginal-cost curve for producing crude oil is _________ sloped, reflecting variation in the cost of extracting oil from different sources.
Transcribed Image Text:
Application 2 THE RISING MARGINAL COST OF CRUDE OIL APPLYING THE CONCEPTS #2: Why is the Marginal-cost curve positively sloped? How does the marginal cost of producing crude oil for the world market change as the volume of oil increases? For the first 40 million barrels per day, the marginal cost is less than $10 per barrel. The marginal cost increases at a moderate rate for the next 25 million barrels per day, up to roughly $20 per barrel for 65 million barrels per day. The marginal cost then starts to increase rapidly, to roughly $80 per barrel for 75 million barrels per day (the quantity produced in early 2015). The marginal cost curve reflects variation in the cost of extracting oil from different sources. Starting at the low end of the cost curve, the marginal cost is relatively low for nations in the Middle East (including Saudi Arabia and United Arab Emir- ates) and Russia. In the intermediate range, marginal cost is higher for oil from the North Sea, oil sands projects in Canada, and conventional onshore sources in the U.S. At the upper end of the cost curve, the marginal cost is relatively high for oil from the Arctic, biodiesel, and ethanol.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
The marginalcost curve for producing crude oil is positively sloped reflecting variation in the cost ...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Microeconomics Principles Applications And Tools
ISBN: 9780134078878
9th Edition
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
Question Posted:
Students also viewed these Business questions
-
The Miss Manners Refinery in Dry Rock, Oklahoma, converts crude oil into gasoline. It takes 1 barrel of crude oil to produce 1 barrel of gasoline. In addition to the cost of oil there are some other...
-
How does the marginal cost of producing crude oil for the world market change as the volume of oil increases? For the first 40!million barrels per day, the marginal cost is less than $10!per barrel....
-
Fixed amount of Land for Oil Drilling: Suppose that your oil company is part of a competitive industry and is using three rather than two inputslabor , capital k and land L to produce barrels of...
-
Discuss the seven contemporary communication issues facing managers.
-
This trial balance of Michels Co. does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors:1....
-
In Exercises determine the open-intervals on which the curve is concave downward or concave upward. x = 3t, y = t - t
-
(a) You exert a constant force of 200 N on a friend on roller skates. If she starts from rest, estimate how far she moves in 2.0s. (b) When a person jumps off a wall, what is the magnitude of his...
-
Data pertaining to the current position of Newlan Company are as follows: Cash ............... $ 80,000 Temporary investments ....... 160,000 Accounts and notes receivable (net) .. 235,000...
-
Question 2 Abantu Ltd, a textile manufacturing company in Bungoma, recently introduced a compensation programme for its employees. As a human resource specialist, explain what prompted the firm to...
-
Economic profit equals ________ minus ________.
-
The opportunity cost of driving for Uber or Lyft includes the ________ and ________ from a regular job. Application 1 OPPORTUNITY COST AND ENTREPRENEURSHIP APPLYING THE CONCEPTS #1: What is the...
-
Whitewall Tire Co. just paid an annual dividend of $1.60 on its common shares. If Whitewall is expected to increase its annual dividend by 2 percent per year into the foreseeable future and the...
-
One of the key responsibilities of a project manager is to manage stakeholder expectations. It is important for the project manager to have interpersonal or soft skills that include: overcoming...
-
How does a change in population demographics alter the use of healthcare?
-
How are resources scheduled on Agile projects as compared to resource scheduling on traditional projects?
-
Regarding resource leveling, why are non-critical path activities generally the first to be delayed?
-
Which of the following statements about a work package is always true? a. It requires the work of the entire project team. b. It is the responsibility of the project manager. c. It is the lowest...
-
How will you get across your do's and don'ts-your policies about stealing, courtesy to patrons, parking rules, eating on the job, and so on?
-
Havel says the grocer doesnt believe what is on the sign and indeed, he says the grocers customers will barely notice it. But Havel maintains that the sign serves a specific function. How would you...
-
(Settlement of Debt) Strickland Company owes $200,000 plus $18,000 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2010, Stricklands business deteriorated due to a...
-
(Term Modification without GainDebtors Entries) On December 31, 2010, the American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing financial trouble....
-
(Term Modification without GainCreditors Entries) Using the same information as in E14-21 above, answer the following questions related to American Bank (creditor). (a) What interest rate should...
-
Ensuring Sustainability for a business 1. Discuss ethical leadership and commitment to improve society, adhering to sustainable development goals. 2. What is the importance ethical leadership and...
-
Franklin's Framing Company had the following cost data for the year: Estimated manufacturing overhead costs for the year Estimated direct labor costs for the year Actual manufacturing overhead costs...
-
Assume Avaya contracted to provide a customer with Internet infrastructure for $2,910,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below:...
Study smarter with the SolutionInn App