Question

Identify a product or service produced by the company you selected for your microeconomic/macroeconomic analysis papers Shell oil producing company. Describe the inputs used to produce this product or service as well as the types of costs involved in its production

Answer 1

The inputs to an oil producing company such as Shell include raw materials such as crude oil, human resources required to manage the complex refinery, the equipment used in converting crude oil into petroleum and other products, electricity, water and other utilities required to run the refinery.

The costs involved in its production include transportation costs, marketing costs, administrative personnel costs, costs of raw materials , operating costs such as cost of electricity, water and other materials used in the production.