"Read the following article and discuss why production of oil in Alberta continued to rise around 2015-2016 despite major companies making losses as a result of sharp declines in oil prices and why this was not sustainable in the long run.

https://insideclimatenews.org/news/23022016/tar-sands-becoming-worthless-production-rises-even-prices-plummet

You should discuss the reasons in terms of:

1) marginal cost

2) the difference between "sunk costs" and "avoidable costs"

3) the difference between fixed cost and variable cost

4) the difference between the short run and the long run."

Answer rating: 100% (QA)

The article explains that despite the sharp decline in oil prices production in Albertas tar sands continued to rise in 20152016 This seems counterint... View the full answer