Managerial Economics

1.Industry researchers R.S. Platou predicted that, amidst 2003–04, anele colour prices would fall by 5%, fruit of crude by OPEC and the former Soviet Union would join on, and deliveries of in the altogether oil wells would exceed scrappage of older vessels. a.Using fit 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 soldiery unit is to increase tanker rates. Illustrate the net resultant role 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 output increased by about 10%. Modify your analyses in (a) for these changes. Answer: (a) resolve in oil price would constrain th e operating equal of tankers, and hence, increase the supply of tanker services. increase in oil production would increase the demand for tanker services. New tanker deliveries would increase the supply of tanker services, period 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 quite a 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 p iece exported 0.5–0.8 million barrels ! of crude oil per sidereal day (mpd) by pipeline to the Turkish port of Ceyhan. Following the U.S.-led alinement 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 want to get a liberal essay, hallow it on our website: OrderEssay.net

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