Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

The OPEC cartel is trying to determine the total amount of oil to sell on the world market. It estimates world demand for oil to be QW = 103.33 - P/6, where QW denotes the quantity of oil (in millions of barrels per day) and P is price per barrel. OPEC's economists also recognize the importance of non- OPEC oil supplies. These can be described by the estimated supply curve QS = .5P + 10.

a. Write down OPEC's net demand curve.

b. OPEC's marginal cost is estimated to be $20 per barrel. Determine OPEC's profit-maximizing output and price. What quantity of oil is supplied by non-OPEC sources? What percentage of the world's total oil supply comes from OPEC?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91549044
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question for this assignment imagine that you have been

Question: For this assignment, imagine that you have been tasked with preparing a cultural brief for an upcoming trip that will put you and your travel companions in touch with a different societal cluster. Choose one cl ...

Question genelia has to choose between a two-day trip and a

Question: Genelia has to choose between a two-day trip and a three-day trip to Hollywood. The table below shows the expected benefit and cost for the different days. Using optimization in levels and optimization in diffe ...

Question after the sovereign default of the government in

Question: After the sovereign default of the government in Argentina and the subsequent financial crisis, the administration imposed higher tariffs on imports to protect local industry. Explain how you think these higher ...

Questions - 1 externalities united airlines flies in and

Questions - 1. Externalities. United Airlines flies in and out of Logan Airport carrying people to cities throughout the world. Their flights are noisy and spread pollution over East Boston and Revere, disturbing the res ...

Question you work for a marketing firm that has just landed

Question: You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and cannies. All of these products have been on the mar ...

Question how might collective decision making play a role

Question: How might collective decision making play a role in the decision to buy a cell phone for a young child? Provide a possible scenario for this decision including the five decision making roles in your example. Pr ...

Question a how is full employment defined and why does the

Question: (A) How is full employment defined, and why does the full-employment rate of unemployment keep changing? (B) In December 1998, the BLS reported the following unemployment rates: 1. Unemployed over 15 weeks 1.1% ...

Question define and draw the utility possibility frontier

Question: Define and draw the utility possibility frontier. In your picture explain what is meant by pareto efficient. Social welfare functions can be used to pick out a point on the utility possibility frontier. Show th ...

Question define and discuss what is meant by risk aversion

Question: Define and discuss what is meant by risk aversion in financial markets. The definition and discussion can include a comparison of two assets, but they must have different returns and different risks. Discuss ho ...

Question consider a welfare program in which individuals

Question: Consider a welfare program in which individuals who do not earn any income receive $100 in benefits but benefits decrease with earned income: for each dollar earned 50 cents of benefits are withdrawn and this i ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved