1. 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. Another oil refiner is offering to trade you 10150 bbl of Alaska North Slope (ANS) crude oil for 10000 bbl of West Texas Intermediate (WTI) crude oil. Assuming you currently have 10000 bbl of WTI crude, the added benefit (cost) to you if you take the trade is closest to ________.

2. You own 1000 shares of Newstar Financial stock, currently trading for 57 per share. You are offered a deal where you can exchange these stocks for 900 shares of Amback Financial Group stock, currently trading at $63 per share. What is the value of this trade, if you choose to make it?

3. What is a competitive market?

A) a market in which goods have a different ask price and bid price

B) a market in which a good can be bought and sold at the same price

C) a market in which a good is sold at a lower price than that for which it can be bought

D) a market in which a good is bought for a lower price than that for which it can be sold