Business, 22.08.2021 17:30 chackey

A farmer owns a plot of ground and sells the right to pump crude oil from his land to a crude oil producer. The crude oil producer agrees to pay the farmer $20 a barrel for every barrel pumped from the farmer's land. Note: if your answers are 1,000 or larger, please use the thousands separator (a comma) in your answer - e. g., 1000 = 1,000. Also do not type in a dollar sign. This will ensure your answer is scored correctly. a. During one year 10,000 barrels are pumped. (1) The farmer receives a payment of $ [a]from the crude oil producer.

(2) The value added by the farmer is $ [b]

b. The crude oil producer sells the 10,000 barrels pumped to a petroleum refiner at a price of $25 a barrel.

(1) The crude oil producer receives a payment of $ [c]from the refiner.

(2) The value added by the crude oil producer is $ [d]c. The refiner employs a pipeline company to transport the crude oil from the farmer's land to the refinery and pays the pipeline company a fee of $1 a barrel for the oil transported.

(1) The pipeline company receives a payment of $ [e]from the refiner.

(2) The value added by the company is $ [f]..

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A farmer owns a plot of ground and sells the right to pump crude oil from his land to a crude oil pr...

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