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Assignment on Economics Sample

   

Added on  2021-04-17

6 Pages1058 Words69 Views
Running head: ECONOMICS ASSIGNMENTEconomics AssignmentName of the Student:Name of the University:Author’s Note:

ECONOMICS ASSIGNMENT1Table of ContentsAnswer to Question-a......................................................................................................................2Answer to Question b......................................................................................................................3Answer to Question c.......................................................................................................................4Reference List..................................................................................................................................5

ECONOMICS ASSIGNMENT2Exxon Mobil is identified as the largest internationally trading oil and gas company in theworld. Presently the company makes use of innovation and technology simultaneously tomitigate the ever growing energy needs of the world (ExxonMobil 2018). The companypossesses a leading inventory of resources and claims to be one of the largest refiners, chemicalmanufacturer and petroleum product marketer. As a manufacturing organization it will also uses inputs and has some fixed and variablecosts. In this assignment the inputs and costs associated with the production of lubricating oilwill be discussed. Answer to Question-aThe inputs or factors of production or resources can be defined as the elements which areused in the production process in order to produce output or the final goods. The quantity ofinputs determines the quality and quantity of output. Exxon Mobil uses crude oil, natural gas andadvanced machineries for producing lubricating oil. Hence these can be considered as the keyinputs of Exxon Mobil.A fixed cost is associated with the production process and is identified as the cost thatdoes not change with an increase or decrease in the amount of goods or services produced(Pindyck & Rubinfeld 2014). Fixed costs are those which are needed to be borne by anorganization or company irrespective of the business activities.On the other hand variable cost is defined as the expense borne by the corporate entitythat changes in alienation with the changes in the quantity of output. Variable costs rise or fall onthe basis of the volume of production of the company (Miller & Benjamin, 2017). There is a

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