„Prices for soybean oil shot to an all-time high last week, powered by growing demand from the biofuels sector. Soybean-oil futures on the Chicago Board of Trade have soared almost 70% this year, closing at nearly 72 cents per pound on Friday. The climb makes soybean oil one of the year's best-performing assets among a basket tracked by The Wall Street Journal, along with other commodities like lumber, corn and hogs. Soybean oil is commonly used as an ingredient in foods like cereals, bread, and other snack foods. Demand for the vegetable oil is growing, however, from the biofuels industry, a chief part of the push toward renewable energy highlighted by President Biden's call for the U.S. to cut carbon-emissions levels in half by 2030 1. Fill in the graph and chart for Soybean Oil. Pe Qe Qs Qd

„Prices for soybean oil shot to an all-time high last week, powered by growing demand from the biofuels sector. Soybean-oil futures on the Chicago Board of Trade have soared almost 70% this year, closing at nearly 72 cents per pound on Friday. The climb makes soybean oil one of the year's best-performing assets among a basket tracked by The Wall Street Journal, along with other commodities like lumber, corn and hogs. Soybean oil is commonly used as an ingredient in foods like cereals, bread, and other snack foods. Demand for the vegetable oil is growing, however, from the biofuels industry, a chief part of the push toward renewable energy highlighted by President Biden's call for the U.S. to cut carbon-emissions levels in half by 2030 1. Fill in the graph and chart for Soybean Oil. Pe Qe Qs Qd

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Consider two companies involved in the supply chain: a retailer who faces customer demand and a manufacturer who produces and sells ski jackets to the retailer. It costs the manufacturer $30 to manufacture and ship each ski jacket. The retailer plans to sell the ski jacket for $300. At this price, demand for the ski jackets is estimated to be 10000 units with a 20 percent chance of happening, 9000 units with a 40 percent chance of happening, and 8000 units with a 40 percent chance of happening. Any ski jacket not sold during the ski season is sold to a discount store for $20. We refer to this value as the salvage value. Both the manufacturer and the retailer can sell the ski jackets they still have on hand after season for this salvage value. (a) Suppose the manufacturer sells to the retailer at $80/unit. How many ski jackets should the retailer order? How much profit does the retailer expect to make as a result? How much profit will the manufacturer make as a result? (b)What is the…
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