Explain what increases in the price of oil have done to the exploration and extraction of oil from more costly sources of oil. What are some of these more costly sources of oil, and what happens to the quantity of proven oil reserves?
What will be an ideal response?
As oil prices have increased, oil companies have more of an incentive to explore for and extract oil from more costly sources. These sources include shale oil, tar sands oil, oil extracted from horizontal drilling and oil extracted from fracking.
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When the marginal costs of firms in perfect competition increases, the short-run supply curve of the industry will shift to the left
a. True b. False Indicate whether the statement is true or false
When a firm's long-run average total costs do not vary as output increases, the firm exhibits
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. an efficient use of resources.
Refer to the graph shown. At which point is elasticity zero?
A. A B. B C. C D. D
The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table
A) France has a comparative advantage in the production of concrete. B) the United States has a comparative advantage in the production of concrete. C) France has an absolute advantage in the production of concrete. D) the United States has a comparative advantage in the production of both goods.