Use the Information for the Question(s)below

question 25

Multiple Choice

Use the information for the question(s) below. As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude. Assuming you currently have 10,000 bbl of WTI crude, the added benefit (cost) to you if you were to sell the 10,000 bbl of WTI crude and use the proceeds to purchase and refine ANS crude is closest to ________.

• A)($1400)
• B)$1400
• C)($3908)
• D)$3908

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Definitions:

Blank Slates

A theory suggesting that individuals are born without built-in mental content and that all knowledge comes from experience or perception.

Information-Processing Theory

A cognitive psychology theory that uses a computer metaphor to explain how human mind processes information, including stages of encoding, storage, and retrieval.

Cognitive Development

The process by which individuals acquire and evolve their abilities in thinking, reasoning, and understanding throughout their lives.

Occurs Daily

Events or actions that happen or are performed every single day.