There is some confusion about the nature of the short run expansion path for the firm as presented in many intermediate microeconomics textbooks. The traditional view is that the short run expansion path (SREP) is a horizontal line since capital is fixed. However, this approach ignores the...

The surprising extended decline in real oil prices during the 1980s has raised the question of OPEC's continued viability as a price-setting cartel. In response, Griffin's (1985) tests of alternative hypotheses about OPEC behaviour performed over a period of generally rising prices...

The recent precipitous decline in world oil prices from $28 per barrel in November 1985 to $12 per barrel in March 1986 has perplexed most industry analysts and OPEC watchers. As oil prices continue to deteriorate, the central question now seems to be: "Is there a price floor below which oil...

A dynamic engineering-based econometric model of the Terns petroleum industry is used to jointly assess the impacts of federal price controls and the windfall profit tax, on both oil and gas supply, over the period 1973-1983. Comparing simulation results obtained using actual prices, and then...

There is some confusion about the nature of the short-run expansion path (SREP) for the firm as presented in many intermediate microeconomics textbooks. The traditional view is that the SREP is a horizontal line because the firm is stuck with a fixed amount of capital. However, this view does...