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Gas Prices
Gas prices are based on the trading price of the oil commodity. They are commonly priced either by the gallon or by the liter and vary depending on where it is bought.
500 Questions
What was the average gas price in 1960?
Asked by Wiki User
In 1960, the US national average price of a gallon of regular gasoline was 31 cents - equivalent to about $2.28 per gallon in 2010.
$0.31/gallon in the US. That was the same as $2.46/gallon today.
Price of gas in 1920?
Asked by Wiki User
At the beginning of 1920, the average price of gasoline in the United States was 17 cents per gallon. However, the gas shortage occurred in 1920, and as such, the average price of gas rose to about 30 cents a gallon in less than 6 months during 1920.
Do gas prices go down during election years?
Asked by Wiki User
not likely. It is a valuable commodity and the major oil companies are manipulating the market making billions in profit. Plus the USA is significantly reluctant to become independent in oil resources. I agree,its not likely. "I doubt we'll ever see 32 cent gas ever again," my mom said. But now 2.00 gas sounds like it dream doesn't it? I do believe we may see 2.00 gas someday. Let's stay optimistic! :) well right now where i live gas went down to $1.68! gas is going down but i do agree about how we'll never see 32 cent gas again. :)
Is obama going to change gas prices?
Asked by Wiki User
We don't know yet for sure but his energy advisor, Steven Chu, has said numerous times that gas prices should be increased to help "curb global warming".
In the summer of 2008, Chu stated that we needed to raise the tax on gas to get it to be the price of gas in Europe to make people drive less. The price of gas was $8 a gallon in Europe at the time.
Whether Obama would attempt such a strategy is unknown. Obama has never said he wanted gas prices to be lower, even dismissing eliminating the gas tax during times of high priced gas.
Obama most likely will increase gas prices, but not to the extent Chu advises.
be looking for the $5.00 gallon gas this summer, the change occurring in May.
What is the current diesel price in Mozambique?
Asked by Wiki User
what is the price of diesel im Mozambique now
The price of a gallon of gas in 2009?
Asked by Takk14
The national average prices for a gallon of regular gasoline from 2000 through 2009 are:
- 2000 - $1.51
- 2001 - $1.461
- 2002 - $1.358
- 2003 - $1.591
- 2004 - $1.88
- 2005 - $2.295
- 2006 - $2.589
- 2007 - $2.801
- 2008 - $3.27
- 2009 - $2.35
What did the fall in wheat prices cause US farmers to do in the 1920s?
Asked by Wiki User
when the war ended it caused the large rates on wheat set up by the government dropped and ended massive purchase from other countries. A "farm bloc" of congressmen joined Congress in1921 to supoort farmers, but the bills they passed in attempt to help farmers such as the McNary-Haugen bill were vetoed by Coolidge.
What was the gas price in Tennessee in 1991?
Asked by Wiki User
In 1991, the US national average price of a gallon of regular gasoline was $1.14 - equivalent to about $1.80 per gallon in 2010.
What was the cost of a gallon of gasoline in 1947?
Asked by Wiki User
According to The People History web site, it was 15 cents a gallon.
Explain the cost- output relationship in the long- run?
Asked by Wiki User
A proper understanding of the nature and behavior of costs is a must for regulation and control of cost of production. The cost of production depends on money forces and an understanding of the functional relationship of cost to various forces will help us to take various decisions. Output is an important factor, which influences the cost.
The cost-output relationship plays an important role in determining the optimum level of production. Knowledge of the cost-output relation helps the manager in cost control, profit prediction, pricing, promotion etc. The relation between cost and its determinants is technically described as the cost function.
C= f (S, O, P, T ….)
Where;
- C= Cost (Unit or total cost)
- S= Size of plant/scale of production
- O= Output level
- P= Prices of inputs
- T= Technology
Considering the period the cost function can be classified as (1) short-run cost function and (2) long-run cost function. In economics theory, the short-run is defined as that period during which the physical capacity of the firm is fixed and the output can be increased only by using the existing capacity allows to bring changes in output by physical capacity of the firm.
1. Cost-Output Relation in the Short-Run
The cost concepts made use of in the cost behavior are Total cost, Average cost, and Marginal cost.
Total cost is the actual money spent to produce a particular quantity of output. Total Cost is the summation of Fixed Costs and Variable Costs.
TC=TFC+TVC
Up to a certain level of production Total Fixed Cost i.e., the cost of plant, building, equipment etc, remains fixed. But the Total Variable Cost i.e., the cost of labor, raw materials etc., vary with the variation in output. Average cost is the total cost per unit. It can be found out as follows.
AC=TC/Q
The total of Average Fixed Cost (TFC/Q) keep coming down as the production is increased and Average Variable Cost (TVC/Q) will remain constant at any level of output.
Marginal Cost is the addition to the total cost due to the production of an additional unit of product. It can be arrived at by dividing the change in total cost by the change in total output.
In the short-run there will not be any change in Total Fixed C0st. Hence change in total cost implies change in Total Variable Cost only.
Units of Output Q
Total fixed cost TFC
Total variable cost TVC
Total cost (TFC + TVC) TC
Average variable cost (TVC / Q) AVC
Average fixed cost (TFC / Q) AFC
Average cost (TC/Q) AC
Marginal cost MC
0
-
-
60
-
-
-
-
1
60
20
80
20
60
80
20
2
60
36
96
18
30
48
16
3
60
48
108
16
20
36
12
4
60
64
124
16
15
31
16
5
60
90
150
18
12
30
26
6
60
132
192
22
10
32
42
The above table represents the cost-output relation. The table is prepared on the basis of the law of diminishing marginal returns. The fixed cost Rs. 60 May include rent of factory building, interest on capital, salaries of permanently employed staff, insurance etc. The table shows that fixed cost is same at all levels of output but the average fixed cost, i.e., the fixed cost per unit, falls continuously as the output increases. The expenditure on the variable factors (TVC) is at different rate. If more and more units are produced with a given physical capacity the AVC will fall initially, as per the table declining up to 3rd unit, and being constant up to 4th unit and then rising. It implies that variable factors produce more efficiently near a firm's optimum capacity than at any other levels of output and later rises. But the rise in AC is felt only after the start rising. In the table 'AVC' starts rising from the 5th unit onwards whereas the 'AC' starts rising from the 6th unit only so long as 'AVC' declines 'AC' also will decline. 'AFC' continues to fall with an increase in Output. When the rise in 'AVC' is more than the decline in 'AFC', the total cost again begin to rise. Thus there will be a stage where the 'AVC', the total cost again begin to rise thus there will be a stage where the 'AVC' may have started rising, yet the 'AC' is still declining because the rise in 'AVC' is less than the droop in 'AFC'.
Thus the table shows an increasing returns or diminishing cost in the first stage and diminishing returns or diminishing cost in the second stage and followed by diminishing returns or increasing cost in the third stage.
The short-run cost-output relationship can be shown graphically as follows.
In the above graph the "AFC' curve continues to fall as output rises an account of its spread over more and more units Output. But AVC curve (i.e. variable cost per unit) first falls and than rises due to the operation of the law of variable proportions. The behavior of "ATC' curve depends upon the behavior of 'AVC' curve and 'AFC' curve. In the initial stage of production both 'AVC' and 'AFC' decline and hence 'ATC' also decline. But after a certain point 'AVC' starts rising. If the rise in variable cost is less than the decline in fixed cost, ATC will still continue to decline otherwise AC begins to rise. Thus the lower end of 'ATC' curve thus turns up and gives it a U-shape. That is why 'ATC' curve are U-shaped. The lowest point in 'ATC' curve indicates the least-cost combination of inputs. Where the total average cost is the minimum and where the "MC' curve intersects 'AC' curve, It is not be the maximum output level rather it is the point where per unit cost of production will be at its lowest.
The relationship between 'AVC', 'AFC' and 'ATC' can be summarized up as follows:
- If both AFC and 'AVC' fall, 'ATC' will also fall.
- 'ATC' will fall where the drop in 'AFC' is more than the raise in 'AVC'.
- 'ATC' remains constant is the drop in 'AFC' = rise in 'AVC'
- 'ATC' will rise where the drop in 'AFC' is less than the rise in 'AVC'
- When 'AFC' falls and 'AVC' rises
2. Cost-output Relationship in the Long-Run
Long run is a period, during which all inputs are variable including the one, which are fixes in the short-run. In the long run a firm can change its output according to its demand. Over a long period, the size of the plant can be changed, unwanted buildings can be sold staff can be increased or reduced. The long run enables the firms to expand and scale of their operation by bringing or purchasing larger quantities of all the inputs. Thus in the long run all factors become variable.
The long-run cost-output relations therefore imply the relationship between the total cost and the total output. In the long-run cost-output relationship is influenced by the law of returns to scale.
In the long run a firm has a number of alternatives in regards to the scale of operations. For each scale of production or plant size, the firm has an appropriate short-run average cost curves. The short-run average cost (SAC) curve applies to only one plant whereas the long-run average cost (LAC) curve takes in to consideration many plants.
The long-run cost-output relationship is shown graphically with the help of "LCA' curve.
To draw on 'LAC' curve we have to start with a number of 'SAC' curves. In the above figure it is assumed that technologically there are only three sizes of plants - small, medium and large, 'SAC', for the small size, 'SAC2' for the medium size plant and 'SAC3' for the large size plant. If the firm wants to produce 'OP' units of output, it will choose the smallest plant. For an output beyond 'OQ' the firm wills optimum for medium size plant. It does not mean that the OQ production is not possible with small plant. Rather it implies that cost of production will be more with small plant compared to the medium plant.
For an output 'OR' the firm will choose the largest plant as the cost of production will be more with medium plant. Thus the firm has a series of 'SAC' curves. The 'LCA' curve drawn will be tangential to the entire family of 'SAC' curves i.e. the 'LAC' curve touches each 'SAC' curve at one point, and thus it is known as envelope curve. It is also known as planning curve as it serves as guide to the entrepreneur in his planning to expand the production in future. With the help of 'LAC' the firm determines the size of plant which yields the lowest average cost of producing a given volume of output it anticipates.
Why are gold prices rising?
Asked by Wiki User
Because after topping $1,000 an ounce in Mid-February, the price of gold bullion to $940 Monday. This is very close to a brand of technical support at $935. Yet another layer at $900 which should keep it lowing much longer. Despite the lull these are very relatively high prices historically, yet as we face the threat of substantial global inflation as a result of recession fighting, gold's upside is enormous. Adam Sauss, a co-manager of Appleseed Fund (AAPLX), a diversified fund with a significant state in gold, says all the steps governments are taking to fight the downturn will lead to inflation. "In fact, if you think of the ultimate way out of the housing mess, it is to devalue the dollar to get housing prices up again," he says.
Strauss is no gold bug or hard-money zealot; his fund bills itself as "socially responsible," and he says he favors investments "that allow shareholders to sleep well at night." Gold fills that bill. Appleseed bought its stake because its managers believed "gold was undervalued, and we still do, which is why we continue to own it," Strauss says.
A weakened dollar is gold's best friend. Assuming the price doesn't fall significantly below $900, "then we will start heading up again, and if we can get firmly above $1,000, I think we could run anywhere between $1,200 and $1,500" an ounce, says Mark Arbeter, the chief technical strategist for Standard & Poor's.
"Of course, some of this has to do with the action of the stock market," he adds. "The weaker the stock market is, the better gold will perform."
What was the price of a gallon of gas in Chicago in 1929?
Asked by Wiki User
19 cents/gallon
it was less than that in 1954 with gas wars I remember 14.9 or less. where on earth does 19 in 1929 come from? diaper babies?
What is the price of a gallon of gas in California?
Asked by Wiki User
I just paid 2.95 at an arco in santee, ca. 92071
Wehat was the gas prices in 2001?
Asked by Wiki User
In 2001, the price of oil varied from a low of $15.54 per barrel in December to a high of $25.27 in February.
How much was the price of gas in 1960?
Asked by Wiki User
In 1960, the US national average price of a gallon of regular gasoline was 31 cents - equivalent to about $2.28 per gallon in 2010.
Why a indifference curve is convex?
Asked by Wiki User
combinations food(x) clothing(y) MRS(xy)
A 1 12 -
B 2 6 6
C 3 4 2
D 4 3 1
A(1,12) B(2,6) C(3,4) D(4,3)
at each combination consumer receives same level of satisfactn.as income is given and constant and there is no scope for underspending when consumer consumes additional unit of one commodity(food) he has to give up some units of clothing.at each level sacrifice in terms of clothing reduces as now clothing becomes scarce in comparison of food.according to law of DMU with every additional consumption utility diminishes and hence consumer starts valuing less food for clothing.hence MRS is falling.
What was the cost of gasoline in 1972?
Asked by Wiki User
In 1972 while living in Indiana I paid .35/gal for Regular. Note that this was leaded gasoline.
Why is gas prices going back up?
Asked by Wiki User
For the most part, our gas prices do not follow any sort of documented pattern. While it has been great watching prices plummet over these past couple of months, this has less to do with demand, or supply because OPEC is a protected cartel. They set the price and we pay it, or go without gas. The problem, however, is when they keep the price high people start talking about alternative sources of energy ect, like we saw during the election. This is bad for them because they rely on our dependency for oil. Consequently they begin to lower the price, but that's not to say they won't raise it again once they feel our memories have been erased, ect.
What is the cost of a gallon of gasoline in 1992?
Asked by Wiki User
In 1994, the US national average price of a gallon of regular gasoline was $1.11 - equivalent to about $1.63 per gallon in 2010.
What will be the gas prices in the year 2048?
Asked by Wiki User
Gas prices in 2048 will be apr. $ 32.00 dollars a gallon. they will hopefully not be around, but studies show that they will be around $6.00 a gallon! around 32.00 dollars! that is interesting!?
What is the real reason for high gas prices?
Asked by Wiki User
Well basic economics will tell you that usually two factors will work together to determine what the price of a product will be. The first is supply. The amount of any specific product that you have readily available to sell. And the second is the demand for that product. With essential products such as gasoline, there is always a demand and it is usually fairly predictable. During the summer, prices traditionally rise because it is an American tradition to pack the family in the car and go somewhere. When millions of people across the country do this at roughly the same time, this causes a huge spike in demand, allowing the prices to rise.
In the early part of 2009 we saw more and more however that although prices continued to fall on raw crude oil, (thus the cost of the base raw material was cheaper) while at the same time demand was dropping sharply as well as people had become accustomed to conserving gas during the huge price increase the year before. Most refineries were working at only 70% of their capacity in order to keep to much processed gasoline from hitting the market. Even so, the national oil reserves were reporting gains across the board.
So with massive increase in supply, and a fairly large decrease in the demand for the products, the market dictates that the price of oil should have dropped. Instead they started increasing. When all of the facts are looked at closely, it would seem that those who refine and distribute gasoline in the United States of America, had decided to band together and all increase their prices despite a failing market for their product.
Normally, a free market would regulate such a trend. If the price of something is out of line, you just don't buy it. This done on a mass scale would cause a business to lower their prices, or fail. However with essential items, such as food, and energy, the market cannot properly respond. Although we would love to give these price gougers the finger, we cannot simply not buy gasoline, as there is not a valid alternative.
Many of the antitrust and monopoly regulations that are a part of American Corporate Law are put into place so just such an incident cannot occur. However, the evidence increasingly indicates that the oil industry companies are doing exactly that. What's worse, is that nobody in any recent administration has taken the necessary steps to prevent such an event from occurring.
It is an interesting connection that while we were having the largest crisis based around the price of fuel in recent history, a former oil company CEO sat in the oval office, and Big Oil companies released the highest profits of any company ever in global history.
How much did gasoline cost in 1964?
Asked by Wiki User
As near as I can recall and as near as I have been able to find on the net (which corroborates my memory) the average price of a gallon of gasoline in 1964 was about .27 cents a gallon. I bought gasoline for my first motorcycle a Honda 90 in 1964 in Tulsa, Oklahoma and it was 16 cents per gallon, and even less during gas wars that stations had alot. Minimum wage then was $1.25 per hour. The Honda got 174mpg I could pay for 15,000 miles of fuel then by working 13 hours at minimum wage when I was 14 years old. In May of 2008 one would need to work for 20 weeks at 40 hrs per week to buy 15,000 miles for a 15 mpg vehicle. In 1964 one needed to only work for 4 weeks to purchase the same amount of fuel for the 15mpg vehicle to travel 15,000 miles. There are only 52 weeks in a year, so one needs to work nearly half a year at minimum wage in May of 2008 to travel the same mileage that four weeks work purchased in 1964.
