3. A large crude oil producer in the Middle East asks you to help the company find the revenue-maximizing output of crude oil. The firm provides you with five years of monthly data of price and customer nominations (customer nominations refer to customers' indicating how much crude oil they would like to buy at the particular price).

A. Carefully explain how you would answer this question. Be sure to explain what you are trying to measure, what data you will use, and show graphically how you would identify the demand function.

B. You notice that in some months both nominations and price are higher than in other months. Explain whether this is a violation of the law of demand. C. The crude producer also wants to know if its crude oil competes with North American natural gas. How would you answer this question?