Question

Figure: Oil Price per barrel $100 of oil Supply 80 60 40 20 0 10 20 30 40 50 Quantity of oil (millions of barrels per day) To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is: $40. $60. $80. $20. 

          Figure: Oil
Price per barrel $100
of oil
Supply
80
60
40
20
0
10
20
30
40
50
Quantity of oil
(millions of barrels per day)
To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is:
$40.
$60.
$80.
$20.
Show more…
Figure: Oil Price per barrel 100 of oil Supply 80 60 40 20 0 10 20 30 40 50 Quantity of oil (millions of barrels per day) To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is:40. 60.80. 20.

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Principles of Economics
Gregory Mankiw 8th Edition
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Figure: Oil Price per barrel $100 of oil To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is: $40. $60. $80. $20. Figure:Oil Price per barrel $100 of oil Supply 80 60 40 20 0 10 20 30 40 50 Quantity of oil (millions of barrels per day) To produce 30 million barrels of oil per day, the minimum price per unit that producers in the diagram require is: O$40. O $60. O $80. O$20.
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Transcript

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0:00 Hi there.
00:01 So for this problem, we are told that an oil company has two refineries.
00:07 Now, refinery a then produces 200 barrels of high -grade oil.
00:23 So high -grade oiled is 200.
00:29 Medium -grade oiled is 300.
00:35 And low -grade oil is equal to 200.
00:46 Now, in the case of refinery b, we have, for high -rate -oiled, it produces 100.
01:00 For medium, it produces 100, and for low, it produces 100.
01:16 200.
01:19 Now for the first one, the cost of production is $12 ,000.
01:30 And for the refinery p, the total cost of production is 10 ,000 to operate.
01:42 So with that information, we know that the company must produce at least to 800 barrels of high grade oil.
01:56 So it must be, this value must be greater or just put in here.
02:02 Let me just put in here.
02:04 Greater or equal to 800.
02:08 For the medium case, it must produce 900 barrels, greater or equal to 900.
02:19 And for the low case, it should.
02:21 Should produce 1 ,000 barrels.
02:28 So with that, we will have, we are going to set that ed is the number of days that refinery a is in operation, and y is the number of days of that that refinery b is in operation.
02:47 So with that in the information given, we can set the following relations, so that is 200.
02:57 So this is for the case of high rate oil...
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