Which of the following is most likely to be a variable input in the transportation of crude oil?
A) a 26-inch diameter pipeline
B) a large crude oil carrier under long-term contract to Exxon
C) electricity required to run the pumps used in the pipeline
D) oil unloading facilities at a refinery
E) an oil drilling platform in the Gulf of Mexico

Question

Quizplus · Accepted Answer

The amount of electricity required to run the pumps used in the pipeline can vary depending on the distance and volume of crude oil being transported. Therefore, it is most likely to be a variable input. The other options are either fixed inputs (e.g. a 26-inch diameter pipeline) or not directly related to the transportation of crude oil (e.g. an oil drilling platform in the Gulf of Mexico).

Which of the Following Is Most Likely to Be a Variable