...Wall Street Journal, July 2008, Page A3 Summary The dramatic increase in the price of oil has been the most significant factor relating to the increase in the price of gasoline. The high price of oil is a simple case of supply and demand. The supply of oil has not increased in proportion with the increase in demand. Demand for oil has increased worldwide as countries like China and India, as well as other developing countries, are dramatically increasing their demand for oil. This demand, coupled with investors who are seeking to invest in commodities such as oil due to the weak dollar, are driving oil prices up. The cost of gasoline is not solely based on the price of oil. The price of gasoline also includes the taxes, the cost to refine oil into gasoline, the transportation costs, and the profit of the gasoline dealer. Stocks of gasoline grew by almost one million barrels which means there will be plentry of gasoline available. The weaker demand of gasoline, combined with plentiful gasoline supplies, could eventually lead to lower prices at the pump. In April, gasoline demand was down and this has made for one of the weakest summer driving seasons in years. A survey commissioned by Discover Financial Services found that 62% of respondents are changing their holiday plans because of the higher gas prices, while 15% canceled vacations. However, declining gasoline consumption in the U.S. has done little to deflate gasoline prices at the pump so far. The problem is that...
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...Awaken by the worries of conventional and unconventional pollution case due to over use of fossil fuel, natural resource supplies and energy means. It is time to look for alternative sources of energy to fuel our modern life and its amenities. The need for a new energy source is both because of a scare of depleting natural reserves and to reduce the atmospheric pollution. Governments of many countries have already started taking steps in this direction. In America, for example, The Obama administration has, set forth a goal of having one million electric-powered vehicles on U.S. roads by 2015, while some others have also proposed a medium-term goal where electric vehicles would consist of 20% of the passenger vehicle fleet by 2030 or approximately 30 million electric vehicles to contribute toward greener planet or reduce their carbon print. Many big automobile companies have also started taking steps in this direction by giving serious thought to development of battery operated vehicle or hybrid vehicles. Nissan Motor for example has already put a six billion dollars bet in the growing market for such vehicles. To those worried about the over dependence of their countries on exports of oil from foreign countries, development and deployment of electric vehicles will be a huge respite. Implementing stronger efficiency standards and imposing higher taxes on motor fuels are some steps in the direction to reduce over dependency on depleting natural resources, but achieving even...
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...Q # 1 {Chapter # 4} (a) If there are no restrictions on the number of taxi rides that can be supplied then in that case the equilibrium quantity will be 11 million taxi rides and the equilibrium price will be $6.5. This is illustrated in the diagram below : (b) If the Mayor set the price ceiling at $5.5 then in that case there will be a shortage of the 4 million taxi rides ($13M rides-$9M rides). The taxi drivers lose because now the fare per taxi ride has reduced from $6.5 to $5.5. Also the people who are unable to get a taxi ride at $5.5 (since the demand for the taxi rides is now being more than the supply of the taxi rides) will also stand to lose. Those who are able to get the taxi ride at $5.5 are benefited from this policy. This is illustrated in the diagram below : (c) Since the stock market crashed, the people in the Gotham city became poor. This resulted in the reduction in the demand of the taxi rides by 6 million rides per year at any given price. Since the demand for the taxi rides reduced due to a factor other than price, there will be a leftward shift in the demand curve for the taxi rides. Thus the new equilibrium quantity will be 8 million taxi rides and equilibrium price will be $5 per taxi ride. This is illustrated in the diagram and the grid below : Fare per ride | Quantity Demanded | Quantity Supplied | 7 | 4 | 12 | 6.5 | 5 | 11 | 6 | 6 | 10 | 5.5 | 7 | 9 | 5 | 8 | 8 | 4.5 | 9 | 7 | (d) The mayor announces a policy in...
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...CASE STUDY: CALCULATING A CARBON FOOTPRINT Ahmad is the Sales Manager at Balakong-based furniture maker XYZ. XYZ sell just over half of their furniture through ‘One Stop Furniture Store’ (OSFS): a retailer with branches throughout Klang Valley. OSFS have told Ahmad that they are embarking on a ‘Carbon Responsibility’ program and will be including the carbon footprint data of their 10 major suppliers in their next customer newsletter. This includes XYZ and their main competitors. Ahmad explains that XYZ have not undertaken a carbon footprint exercise, but that they consider themselves to be a green company. OSFS state that of the retailer's 10 major suppliers, XYZ is the only one with no information. Ahmad asks for 2 weeks to come back with results for their carbon footprint. He calls James, a local environmental consultant, to ask if he can quickly process the data and calculate XYZ's carbon footprint. Background to the company XYZ are a Balakong-based furniture maker founded in 2002. They design and hand craft wooden furniture using reclaimed wood, sourced from across Malaysia. 52% of their sales are made through their main retailer, OSFS, with the remaining sold through other, smaller retailers, or direct to the public through their showroom in The Pavillion. XYZ runs its business from four separate sites: a design and manufacturing centre, a distribution warehouse, a sales showroom and their head office. Carbon Footprinting Climate change is...
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...Sweet Brazilian Bioethanol Industry International Case Study Rodel M. Adriano March 31, 2013 Economics for Managers 551 Curtin University of Technology Graduate School of Business International Case Study – Assessment 2 Page 1 of 14 TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................................................ 4 A. Analysis of the Ethanol Subsidy .............................................................................................................. 5 B. 1973 oil crisis............................................................................................................................................... 5 C. 2000s Energy Crisis................................................................................................................................... 7 II. III. IV. V. PRESENT COMPETITIVENESS OF BIOETHANOL ............................................................................................ 7 OTHER ALTERNATIVE FUELS ..................................................................................................................... 11 CONCLUSIONS ............................................................................................................................................ 12 REFERENCES ..................................................................................................................................................
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...burn cleaner than traditionally fuelled vehicles because of the compound composition of natural gas. Natural gas does not emit much of toxic gas; it releases little amounts of propane, ethane, and butane when used in vehicles. The environmental hazards caused by natural gas vehicles are a lot less than those running on traditional fuel vehicles. Table of Contents List of Tables 3 Executive Summary 5 Introduction 5 Problem and Opportunity 5 Purpose 5 Background 6 Sources 6 Scope 7 Structure 8 Key Terms 9 Methods 9 Results 10 Conclusion 13 Recommendations 14 Work Cited 15 List of Tables Table 1. Compressed Natural Gas Average Price by Region from Clean Cities Sources. Executive Summary The increasing effect of gas emission on the environment has made it possible to seek an alternative means of running a car engine. The natural gas is a suitable alternative for the...
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...EPA /EA Semester 2 Sample poster Note: This is not meant to be an example of the perfect poster. But, you will see that it draws out a number of economic concepts, and shows their relevance to this particular story. This poster demonstrates an understanding of course material and avoids frivolous discussion of noneconomic issues. Furthermore, this poster discusses a relevant news article from a reputable source. NB: Economic Welfare is not a topic you can select – this sample project is meant to illustrate what sort of analysis is expected. Topic Selected: Economic Welfare Fuelling Controversy The Economist 11 January 2014 Overview of Article Many governments subsidise fuel consumption. However, many countries that currently subsidise fuel are starting to reverse course. In June 2013, Indonesia increased fuel prices by 44% and decreased their total subsidy cost by $20 billion annually. Malaysia also reduced fuel subsidies – household energy bills increased by 15% as a result. Egypt and India are considering following suit. The key rationale to these governments of removing subsidies was to decrease the budget deficit. Effects of Fuel Subsidy According to Article The article discusses that there are many other benefits to reducing fuel subsidies. o Fuel subsidies generate deadweight loss. o Fuel subsidies make inequality worse – it is mostly the rich that benefit (the rich use fuel disproportionately more). o Removal of fuel subsidies will allow...
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...second revenue stream from sale of electricity. Recently-developed liquid-phase synthesis reactors are especially attractive for ‘‘oncethrough’’ processing. Both ‘‘recycle’’ and ‘‘once-through’’ plant configurations are evaluated in this paper. Because synthesis catalysts are poisoned by sulfur, essentially all sulfur must be removed upstream. Upstream removal of CO2 from the synthesis gas is also desirable to maximize synthesis productivity, and it provides an opportunity for partial decarbonization of the process, whereby the removed CO2 can be captured for underground storage. The analysis here suggests that co-capture and co-storage of CO2 and H2S (if this is proven technically feasible) could have important favorable impacts in some cases on liquid fuel production costs. Furthermore, the lifecycle CO2 emissions from production and use...
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...Counter Offer to Summary/Offer to Purchase Real Property Due to acquisition of right of way and damages Silver Bullet, Inc. William “Bill” I. Young 1116 Shoal Creek Road | Burnsville | NC 28714 Property Location: 4075 Hwy 19E | Burnsville T:828.208.0006 1|P a g e COUNTER OFFER TO SUMMARY/OFFER TO PURCHASE REAL PROPERTY Submitted to the State of North Carolina Department of Transportation OVERVIEW Retail gasoline businesses, such this gas station and convenience store, are single-purpose economic enterprises. Because of their specialty of design, they cannot be readily converted to other types of businesses without a significant loss in value. Gas station convenience stores are special-built properties designed to make money in only one way, and they are not easily adapted to other uses. These businesses derive a significant part of their gross sales, about 50 percent, from the sale of motor fuels (National Association of Convenience Stores, 2006). The Silver Bullet recorded at one time 77% of gross sales from the sale of gasoline. This business also sold propane and kerosene (2000 UST). This site has (1) 8,000, (2) 6,000, and (1) 2000 gallon warranted (40 yrs) USTs for fuel (installed by Southern Tank & Pump, NC). stations, and canopies, which are situated on-site but separate from the building. Design features create and significantly influence the property value. For example, the fuel service is so specially-designed that if it becomes no longer profitable...
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...Alternative Fuel Company Case Cristin Johnson BUS632: Advanced Logistics Ashford University Instructor: Matthew Keogh July 12, 2016 Alternative Fuel Company Case For this assignment I will refer to the Barwood Cab Fleet Study of alternative fuel. Barwood based in Kensington, Maryland incorporated the use of compressed natural gas (CNG) vehicles with a limited number in 1996. As one of the reasons to use the CNG vehicles was incentives which the local gas utility offered. This company has been in operation for over 30 years, being a family owned business with a fleet of some 400 vehicles which serves more than 5,000 customers on a daily basis. Like most cab companies the cabs are assigned to individual drivers as independent contractors, paying a daily rent in order to use Barwoods vehicles. “Of course, cost is still an issue with many alternative sources of fuel, according to Chuck Combs, who is the program lead for alternative energy at China Lake and provides the Navy and Marine Corps with technical expertise in solar and fuel cell efforts”. (Hillburn, 2007) Here will be discussed how the alternative fuel automobile company has a first year market forecast of 1000 units by identifying the forecasting model with an explanation of why it is the obvious choice, while during the first three years of operation the automobile company had actual sales of: year one 800 units, year two 1200 units, year three 2000 units and by using...
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...Chapter 5 Activity-Based Costing and Customer Profitability Analysis Cases |5-1 |Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) | |5-2 |Columbo Soft-Serve Frozen Yogurt: Using Activity Based Costing To Assess Channel/Customer Profitability | |5-3 |Wilson Electronics (A) | |5-4 |Wilson Electronics (B) | |5-5 |The Buckeye National Bank (ABC Costing in the Service Sector) | |5-6 |Precision Paint | |5-7 |Forest Hill Paper Company | | | | Readings 5-1: “Activity-Based Costing and Predatory Pricing: The Case of the Petroleum Retail Industry” by Thomas L Burton and John B MacArthur, Management Accounting Quarterly, (Spring 2003). The assignment of indirect costs in a volume-based costing system can lead to product-cost subsidization—overcost high-volume products and undercost low-volume...
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...SUMMARY OF REPORT I. Introduction to Four Market Structure II. Comparative Characteristics of Four Market Structures III. Four Market Structures a. Pure Competition i. Characteristics ii. Demand Curve iii. Examples iv. Summary b. Pure Monopoly v. Characteristics vi. Demand Curve vii. Examples viii. Summary c. Oligopoly ix. Characteristics x. Demand Curve xi. Examples xii. Summary d. Monopolistic Competition xiii. Characteristics xiv. Demand Curve xv. Examples xvi. Summary FOUR MARKET STRUCTURES Market structure is the selling environment in which a firm produces and sells its product The preceding chapter on the theory of production and cost made us understand the behavior of producer towards an efficient use of productive inputs because the use of inputs is associated with economic cost be it explicit or implicit cost. Efficient use of resources means proper identification of the use of the land, labor, capital and entrepreneur. These should not be underused as in 1st stage production or overused as in the 3rd stage of production, so that the cost associated to the production level can be minimized. This chapter examines a broad range of markets and explains how the pricing and output decisions of firms depend on market structure and the behavior of competitors. To determine...
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...Executive Summary I have been requested to evaluate the ethical dilemma surrounding the product offering of Great Lakes Chemical Corporation. The company produces tetraethyl lead (TEL), which is an additive for gasoline. Surmounting studies from the past few decades have proven the extensive harmful effects leaded gasoline has on the environment, which has caused considerable vocal opposition from environmental organizations against the company. The dilemma arises in the fact that TEL is a huge financial success for Great Lakes; the company controls 90% of the market and the product accounts for 59% of their annual profit. Great Lakes should cease all operations involving the sale of TEL and focus on being a responsible corporate citizen. They will need to reinvest their resources on penetrating new markets, using their existing products as well as new products made possible by the special bromine production process of their subsidiary company Octel Associates. The distribution of TEL has given Great Lakes a very negative brand image. They have the chance to reverse that image by exiting an ethically unappealing market on their own terms. The company has a successful history of entering foreign markets and adapting to regulations overseas. This plan of action is feasible because Great Lakes is already so financially sound and is established as an international corporation with contacts across the globe. Situational Analysis Great Lakes Chemical Corporation, originally...
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...The Politically Incorrect Guide to Capitalism: A Summary Naomi Craig Mount Vernon Nazarene University The Politically Incorrect Guide to Capitalism: A Summary The Politically Incorrect Guide to Capitalism is a 2007 publication from Regenery Publishing, Inc., and written by Dr. Robert P. Murphy. The central idea of this work aims at dispelling myths and notions that capitalism is based on greed, and inherently evil. This aim of this report is to summarize the work of Dr. Murphy by providing a brief history of the author and recapping the major points of his book. Author’s Professional History Dr. Robert P. Murphy received his Bachelor of Arts in Economics from Hillsdale College in 1998, and his Ph.D. in 2003 from New York University (Institute for Energy Research, 2012). He was a college professor for nearly three years before pursuing his writing and research endeavors. He is a now senior fellow in business and economic studies at the Pacific Research Institute, an economist with the Institute for Energy Research, a research fellow with the Independent Institute, and an associated scholar with the Ludwig Von Mises Institute. In addition to the topic of this summary, he has written another book titled “The Politically Incorrect Guide to The Great Depression and The New Deal,” and regularly writes articles for financial publications including Forbes and Barron’s (Institute for Energy Research). Summary of Literature Dr. Murphy presents many commonly held...
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...Chapter 3: Answers to Questions and Problems 1. a. When P = $12, R = ($12)(1) = $12. When P = $10, R = ($10)(2) = $20. Thus, the price decrease results in an $8 increase in total revenue, so demand is elastic over this range of prices. b. When P = $4, R = ($4)(5) = $20. When P = $2, R = ($2)(6) = $12. Thus, the price decrease results in an $8 decrease total revenue, so demand is inelastic over this range of prices. c. Recall that total revenue is maximized at the point where demand is unitary elastic. We also know that marginal revenue is zero at this point. For a linear demand curve, marginal revenue lies halfway between the demand curve and the vertical axis. In this case, marginal revenue is a line starting at a price of $14 and intersecting the quantity axis at a value of Q = 3.5. Thus, marginal revenue is 0 at 3.5 units, which corresponds to a price of $7 as shown below. Price $14 $12 $10 $8 $6 $4 $2 Demand $0 0 1 2 3 MR 4 5 6 Quantity Figure 3-1 Managerial Economics and Business Strategy, 7e Page 1 2. a. At the given prices, quantity demanded is 700 units: d Qx = 1000 − 2 (154 ) + .02 ( 400 ) = 700 . Substituting the relevant information into Px 154 = −2 = −0.44 . Since this is less 700 Qx than one in absolute value, demand is inelastic at this price. If the firm charged a lower price, total revenue would decrease. b. At the given prices, quantity demanded is 300 units: d Qx = 1000 − 2 ( 354 ) + .02 ( 400 ) = 300 . Substituting the relevant information...
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