Use the Information for the Question(s)below

question 106

Multiple Choice

Use the information for the question(s) below.
As an oil refiner, you are able to produce $76.16 worth of unleaded petrol from one barrel of Tapis Outback Crude (TOC) oil. Because of its lower sulphur content, you can produce $77.25 worth of unleaded petrol from one barrel of Western Australian Intermediate (WAI) crude.
-Assuming you just purchased 10 000 tonnes of WAI crude at the current market price, the total benefit (cost) to you if you were to refine this crude oil and sell the unleaded petrol is closest to:

• A)$774 319
• B)$772 500
• C)$773 024
• D)$773 908

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Definitions:

Demand

Pertains to the desire and capability of consumers to buy products and services at various price points.

Full Employment

A condition in an economy where all accessible labor resources are utilized in the most effective manner.

Expected Rate Of Profit

The anticipated return on an investment, considering potential risks and rewards.

Recessions

Periods of economic decline lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.