Global oil market price, oil market, price of oil, Texas, oil market
This essay briefly describes the various principles of economics and economic theories that determine the price of the oil in the global market. It describes vividly the major reasons that have led into the decline of the oil substantially over the past 7 years. Therefore, the essay uses the economic principles in giving the reasons for the decline of the oil price that are based with the oil global market.
[...] Also other new way of drilling oil have been invented which make it faster and cheaper to drill oil. As a result, there is a substantial decline in the oil price in the global market. In conclusion, economic principles have played a major role in the determining of the price of oil in the global market. Over the last decade a lot has been observed concerning the oil markets that has influence its pricing negatively. The decline in oil price in the market has made it to secure great profit maximization. [...]
[...] Robert, L., V Economic principles. On Labour Demand and Equilibria of the Firm. Vol no pp. 612–619. Sloman, J. & Garratt, D Market Structures. In. 6th ed. Harlow: Pearson. [...]
[...] This is well enhanced through proper determination of the market structure. The increase in the demand of the oil led into the declining of its price (Goodwin et al p.15). Economics principles that influence the pricing of oil in the global market The increasing number of the suppliers in the oil global market has greatly influenced the oil price. This is explained by the fact that there is a free entry and exit in the market and as a result there is a need of establishing an equilibrium price; hence leading into the decline of the oil price (Mankiw & Taylor p.157). [...]
[...] Therefore, more action need to be taken to achieve the desired goal or objective in an organization. Reference List Alan, K The Intrinsic Limits of Modern Economic Theory: The Economic Journal, Vol no pp. 126–139. Garegnani, P Heterogeneous Capital, the Production Function and the Theory of Distribution. Review of Economic Studies, Vol no pp. 407–436 Goodwin, Nelson, A & Ackerman, F Microeconomics in Context (2nd ed). Sharpe. Mankiw, N. & Taylor, M Economics (2nd ed., revised Ed.). Andover: Cengage Learning. Mankiw, G Principles of Economics. South-Western: Cengage Learning. [...]
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