Use the Information for the Question(s) Below

question 71

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.
Assuming you currently have 10,000 bbl of WTI crude, the total benefits 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) $794,274
• B) $780,000
• C) $781,550
• D) $784,091

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Definitions:

Discrimination Coefficient

The discrimination coefficient is a concept in statistics and econometrics that measures the difference in treatment or impact between groups, quantifying the extent of discrimination or bias.

Wage Differential

The variation in pay for jobs due to factors such as skill level, location, and industry demand.

Statistical Discrimination

Decision-making based on statistical generalizations about groups rather than on individual merits, often leading to unfair outcomes.