Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. After hurricanes hit the Gulf of Mexico, hundreds of oil well platforms and drilling rigs were damaged. Oil production also stopped as people were

1. After hurricanes hit the Gulf of Mexico, hundreds of oil well platforms and drilling rigs were damaged. Oil production also stopped as people were evacuated. Imagine a hurricane hits the gulf again, damaging 500 out of 2,500 platforms and forcing workers leave another 300 drilling sites to stay safe from the storm. About 90% of oil production is lost due to evacuated workers. About 70% of the oil produced each day is lost due to the damage.

2. A company, SmartWire, develops a robot that can manufacture smartphones. Companies with traditional manufacturing processes can product 500,000 units, or smartphones, per month. Using robots, SmartWire can double the production per month. SmartWire is investing heavily in creating more robots.

3. A medical journal reports that a popular soft drink is linked to serious illness. Experts studied the drink.Fizzy Pop, and were surprised at the high amounts of caffeine and other supplements used to increase energy. When consumed at normal levels of one or two drinks per week, the beverage had minor effects. However, children consuming two to three drinks per day are at risk for caffeine poisoning. Studies show that children under 18 are 50% more at risk of caffeine poisoning.

Which scenario would moly likely lead to an increase in prices? Explain your prediction.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Latin America's Economy Diversity, Trends, And Conflicts

Authors: Eliana Cardoso, Ann Helwege

1st Edition

0262531259, 9780262531252

More Books

Students also viewed these Economics questions

Question

The boss inspires fear; the leader inspires enthusiasm.

Answered: 1 week ago