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Micro Economics Homework

Oil Magic and Gonzo Fuel sell and purchase crude oil, respectively. Gonzo Gas uses the crude oil to provide gasoline and desires to insure against input cost will increase Suppose that on December 1, 2014 the price of crude oil is $62.30 per barrel. Oil Magic and Gonzo Gasoline enter right into a contract on December Petroleum Heat Exchanger Series 1, 2014. The… present extra Oil Magic and Gonzo Gasoline promote and buy crude oil, respectively. Gonzo Gasoline uses the crude oil to produce gasoline and desires to insure in opposition to input cost increases

Suppose that on December 1, 2014 the worth of crude oil is $sixty two.30 per jiangsu shuangxin petroleum machinery 8th edition pdf barrel. Oil Magic and Gonzo Gasoline enter right into a contract on December 1, 2014. The contract specifies that Oil Magic will deliver one million barrels of crude oil to Gonzo Fuel on February 27, 2015 for $65 per barrel

A week after Oil Magic indicators the contract with Gonzo Gasoline, another company referred to as Gasoline-R-Us approaches Oil Magic and asks it to jot down an an identical contract—promising delivery of a million barrels of oil to Fuel-R-Us on February 27, 2015 for $65 per barrel. Oil Magic refuses. Assuming that Oil Magic’s only motive when doing business is to maximize earnings, which of the next may need occurred throughout that week to make Oil Magic refuse to enter into the same deal Test all that jiangsu shuangxin petroleum machinery 8th edition pdf apply.

A)The Group of the Petroleum Exporting International locations (OPEC) announced jiangsu shuangxin petroleum machinery 8th edition pdf that it will minimize crude oil manufacturing in January.
B)The weather turned very cold, increasing the demand for gasoline.
C)The weather turned very heat, reducing the demand for gasoline.
D)A measure of the economic system’s well being unexpectedly declined, igniting fears that the economy is tipping into a recession.