Use the Information for the Question(s) Below

question 21

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.
-Another oil refiner is offering to trade you 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil.Assuming you just purchased 10,000 Bbls of WTI crude at the current market price,the total benefit (cost) to you if you take the trade is closest to:

• A) $730,600
• B) $770,000
• C) $771,400
• D) $773,908

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Definitions:

Oceanic Trench

Deep, narrow depressions in the ocean floor, often formed at subduction zones where one tectonic plate is forced beneath another.

Magmatic Belt

A zone abundant in igneous rocks, typically associated with plate boundaries where magma activities are prevalent.

Passive Margin

The transition zone between oceanic and continental lithosphere that is not an active plate margin.

Nuclear Power Plant

A facility that generates electricity using nuclear reactions, typically through the process of nuclear fission, in a controlled environment.