Production Functions and Cost Functions in Oil Pipelines

1. For an 18-inch argumentation designed for 150,000 lays per twenty-four hour periodtime, what is the short cost per barrel (per curtilage miles) of transferraling crude oil if the through regularize is (a) 50,000 put per twenty-four hours (b) 100,000 lay per day (c) 150,000 lay per day? victimization graph 7, a) Cost of shippinging 50,000 lay would be 30 cents. b) Cost of jinx 100,000 place would be 17 cents. c) Cost of conveyancinging 150,000 barrels would 16 cents. 2. Can a 16-inch logical argument with 10,000 horsepower express 100,000 barrels of crude oil per day? If a firm has a 20-inch rail line, how much horsepower must be used to hug drug 150,000 barrels per day? This consort can be approached in two ways. Both the approaches resistance different answers. a. Using chart 1, a 16-inch personal credit line with 10,000 horsepower allow NOT be able to express 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 wishs to violate 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 acquire T= 349619.69 barrels. Thus, a 16 inch line pipeline with 10k horsepower can transport 100k barrels of oil.

If the pipeline is 20 inch and we need to lease 150k barrels of oil, using the formula, we will need 357.79 3. Does it appear that thither should be many pipelines competing to transport crude oil oer a particular course? Why or wherefore not? I dont think there would be multiple lines competing to transport crude oil over a particular passage un little there is to a greater extent demand than what is currently organism supplied. It does not make sparing sense to run pipelines at less than maximum capacity... If you want to get a wide essay, beau monde it on our website: Ordercustompaper.com

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