Use the Information for the Question(s)below

question 58

Multiple Choice

Use the information for the question(s) below. As an oil refiner, you are able to produce $77 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $78 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude. Another oil refiner is offering to trade you 10,150 bbl of Alaska North Slope (ANS) crude oil for 10,000 bbl of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10,000 bbl of WTI crude, the added benefit (cost) to you if you take the trade is closest to ________.

• A)($1550)
• B)$1550
• C)($3475)
• D)$3475

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Definitions:

Legally Enforceable

Refers to agreements, contracts, or obligations that can be upheld or compelled by law.

Collective Bargaining

A negotiation process between employers and a group of employees aimed at reaching agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Labor Relations

The study and practice of managing the relationships between employers and their workforce, especially the negotiation and application of collective bargaining agreements.

Canada

A country in North America known for its vast landscapes, multicultural society, and as a member of the Commonwealth, headed by a constitutional monarchy.