Question: When gasoline prices spike, producers consider using oil fields that once had been passed over because of the high costs of extracting oil. a. In

When gasoline prices spike, producers consider using oil fields that once had been passed over because of the high costs of extracting oil.
a. In a figure, show what this statement implies about the shape of the oil extraction cost function.
b. Use the cost function you drew in part a to show how an increase in the market price of gasoline affects the amount of oil that a competitive firm extracts. Show the change in the firm's equilibrium profit?

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