Use the information for the question(s) below.

As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
Assuming you currently have 10,000 bbl of WTI crude, the added benefit (cost) to you if you were to sell the
Of WTI crude and use the proceeds to purchase and refine ANS crude is closest to ________.
A) ($1400)
B) $1400
C) ($3908)
D) $3908

Question

Use the information for the question(s) below.

As an oil refiner, you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
Assuming you currently have 10,000 bbl of WTI crude, the added benefit (cost) to you if you were to sell the 
Of WTI crude and use the proceeds to purchase and refine ANS crude is closest to ________.
A) ($1400) 
B) $1400 
C) ($3908) 
D) $3908

Quizplus · Accepted Answer

D) Total Benefits
No trade and refine WTI crude (base case) 11eaabab_c0bf_4847_b90e_419bf0f6115a_TB5536_11 Sell WTI and use proceeds to buy ANS 11eaabab_c0bf_4848_b90e_172fc4e15856_TB5536_11 Buy ANS crude 11eaabab_c0bf_6f59_b90e_17068aefe2c2_TB5536_11 Benefit 11eaabab_c0bf_6f5a_b90e_1b2ca65bb1a0_TB5536_11 11eaabab_c0bf_6f5b_b90e_b1b113cc13e3_TB5536_11 Sell WTI and use proceeds to buy ANS 11eaabab_c0bf_6f5c_b90e_a393988389c4_TB5536_11

Use the Information for the Question(s) Below