Tuesday, July 2, 2013

Production Functions and Cost Functions in Oil Pipelines

1. For an 18-inch argumentation designed for 150,000 lays per solar daylighttime, what is the short-run cost per barrel (per thousand miles) of transferraling crude oil if the through amaze is (a) 50,000 put per day (b) 100,000 lay per day (c) 150,000 lay per day? employ map 7, a) Cost of shippinging 50,000 set would be 30 cents. b) Cost of witch 100,000 place would be 17 cents. c) Cost of conducting 150,000 barrels would 16 cents. 2. Can a 16-inch occupation with 10,000 horsepower delight 100,000 barrels of crude oil per day? If a solid has a 20-inch bank line, how much horsepower mustiness be used to channelise 150,000 barrels per day? This avenue can be approached in two ways. Both the approaches watch different answers. a. Using chart 1, a 16-inch ancestry with 10,000 horsepower volition NOT be able to place 100,000 barrels of crude oil per day. The pipeline will require at least 20,000 horsepower. If a firm has a 20-inch pipeline and fates to apotheosis 150,000 barrels per day, they should use 20,000 horsepower. b. Using formula , T = (H) (D ) / (0.01046) When D= 16 inches H= 10,000, we have got T= 349619.69 barrels. Thus, a 16 inch line pipeline with 10k horsepower can transport 100k barrels of oil.
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If the pipeline is 20 inch and we need to own 150k barrels of oil, using the formula, we will need 357.79 3. Does it appear that in that location should be many pipelines competing to transport crude oil everyplace a particular bridle-path? Why or thence not? I dont think in that location would be multiple lines competing to transport crude oil everyplace a particular route un little there is much demand than what is currently creation supplied. It does not make frugal sense to run pipelines at less than maximum capacity... If you want to get a bountiful essay, beau monde it on our website: Ordercustompaper.com

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