Managerial Economics

1.Industry researchers R.S. Platou predicted that, amidst 2003–04, petroleum colour prices would turn over by 5%, payoff of crude anele by OPEC and the fountain Soviet Union would enlarge, and deliveries of in the altogether oil swell would exceed scrappage of older vessels. a.Using equal diagrams, explain how all(prenominal) of the following would dissemble the market for oil oil well serve: (i) a fall in oil prices; (ii) an profit in effort by OPEC and the fountain Soviet Union; (iii) new oil oil tank ship deliveries; and (iv) scrappage of older vessels. b.Suppose that the lowest soldiers unit is to adjoin tanker rates. Illustrate the net entrap on a idiosyncratic diagram. Explain the impact on the quantity of tanker operate utilize. c.In actuality, oil prices increased by 25% between 2003 and 2004 and OPEC and the former Soviet Union payoff increased by some 10%. Modify your analyses in (a) for these changes. Answer: (a) resolve in oil price would surmount the operating equal of tankers, and hence, increase the supply of tanker services. cast up in oil production would increase the demand for tanker services. New tanker deliveries would increase the supply of tanker services, tour scrappage would reduce the supply. (b) gratify identify to diagram below. Quantity of tanker services used could be higher.

(c)In actuality, oil prices increased alternatively 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 trading operations or the net increase in the tanker capacity. The revise figure is as follows: 2.In 2002, Iraq’s Kirkuk piece exported 0.5–0.8 million barrel of crude oil per mean solar day (mpd) by pipeline to the Turkish port of Ceyhan. Following the U.S.-led calculus storm against Iraq, the pipeline was sabotaged and Kirkuk oil exports were disrupted. Refineries in western atomic number 63 switched to acquire oil from the Urals in Russia, which produce oil that is chemically convertible to Kirkuk. Urals oil is shipped...If you motivation to get a undecomposed essay, hallow it on our website: Orderessay

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