Which of the Following Rock Types Is Most Likely to Host

question 22

Multiple Choice

Which of the following rock types is most likely to host shale gas or shale oil?

• A) coal
• B) very fine-grained sedimentary rocks with low permeability
• C) coarse-grained sandstone with high porosity
• D) coarse-grained sandstone with high permeability
• E) all of these

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Definitions:

Marginal Cost Function

A mathematical representation showing how the cost of producing one additional unit of a good changes as production volume changes.

Optimal Output

The level of production that maximizes a firm’s profit or minimizes its cost under given conditions.

Profit

The financial gain acquired when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Industry Supply Curve

A graph that shows the relationship between the price of a good and the total output of the industry for that good.