Consider the following production chain for petrol. Assume that a Oil driller extracts crude oil, and sells this to a Refiner for $3.00 per litre. The Refiner refines this into petrol, and sells this to a Shipper for $3.30. The Shipper ships petrol, and sells this to a Retailer for $3.50 per litre. The Retailer sells a litre to a customer for $4.00. What is the contribution to GDP associated with this chain of activity?

Consider the following production chain for petrol. Assume that a Oil driller extracts crude oil, and sells this to a Refiner for $3.00 per litre. The Refiner refines this into petrol, and sells this to a Shipper for $3.30. The Shipper ships petrol, and sells this to a Retailer for $3.50 per litre. The Retailer sells a litre to a customer for $4.00. What is the contribution to GDP associated with this chain of activity?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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