Using Your Knowledge of the Age of Lithospheric Crusts and Biogenous

question 30

Essay

Using your knowledge of the age of lithospheric crusts and biogenous sediment accumulation, explain why it would be fruitless, not to mention expensive, to excavate for oil far off the coast, beyond the continental shelf.

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Definitions:

Variable Costs

Costs associated with a business that fluctuate according to operational levels.

Operating Leverage

The degree to which a firm or project can increase operating income by increasing revenue, highlighting the effects of fixed costs.

Production Process

The sequence of operations or activities involved in producing goods or services, from raw materials to finished products.

Machinery

Mechanical devices or equipment required in the manufacturing process or any industry-specific operations.