Managerial Economics

1.Industry researchers R.S. Platou predicted that, amidst 2003–04, anoint colour prices would fall by 5%, produce of anele by OPEC and the former Soviet Union would change magnitude, and deliveries of in the altogether oil wells would exceed scrappage of older vessels. a.Using sufficient diagrams, explain how all(prenominal) of the following would affect the market for oil oil well serve: (i) a fall in oil prices; (ii) an increase in exertion by OPEC and the former Soviet Union; (iii) new tank ship deliveries; and (iv) scrappage of older vessels. b.Suppose that the lowest war machine unit is to increase tanker rates. Illustrate the net aftermath on a individual diagram. Explain the impact on the quantity of tanker services utilize. c.In actuality, oil prices increased by 25% between 2003 and 2004 and OPEC and the former Soviet Union payoff increased by about 10%. Modify your analyses in (a) for these changes. Answer: (a) resolve in oil price wou ld center the operating equal of tankers, and hence, increase the supply of tanker services. gain in oil production would increase the demand for tanker services. New tanker deliveries would increase the supply of tanker services, patch scrappage would reduce the supply. (b) gratify refer to diagram below. Quantity of tanker services used could be higher. (c)In actuality, oil prices increased rather than fell. The net impact on the supply is ambiguous: it depends on which effect is larger – the increase in oil prices on the cost of tanker operations or the net increase in the tanker capacity. The revised figure is as follows: 2.In 2002, Iraq’s Kirkuk piece exported 0.5–0.8 million barrels of crude oil per daylight (mpd) by pipeline to the Turkish port of Ceyhan. Following the U.S.-led densification storm against Iraq, the pipeline was sabotaged and Kirkuk oil exports were disrupted. Refineries in western atomic number 63 switc hed to acquire oil from the Urals in Russia! , which produce oil that is chemically convertible to Kirkuk. Urals oil is shipped...If you want to get a climb essay, hallow it on our website: OrderEssay.net

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