Monday, 22 January 2018

EC0401 Gdb Solution Fall 2018

I think Oligopoly or Cartel market structure domestic oil companies is operating If domestic oil prices continue to rise in future then it will be impact on cost of basic necessities of life in the country is that The cost of food rises as well, partly because oil is used in many ways in growing and transporting food and partly because of the competition from bio fuels for land, sending land prices up. The cost of shipping goods of all types rises, since oil is used in nearly all methods of transports. The cost of materials that are made from oil, such as asphalt and chemical products, also rises if the cost of oil rises, it tends to raise the cost of other fossil fuels. The cost of natural gas extraction tends to rises, since oil is used in natural gas drilling and in transporting water for frocking. Because of an over-supply of natural gas in the country, its sales price is temporarily less than the cost of production. This is not a sustainable situation. Higher oil costs also tend to raise the cost of transporting coal to the destination where it is used.

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