Costs market price

In most processes, the largest individual cost is raw materials. Raw materials costs and product prices tend to have the largest influence on the economic performance of the process. The value of raw materials and products depends on whether the materials in question are being bought and sold under a contractual arrangement (either within or outside the company) or on the open market (the spot price). Open-market prices can fluctuate considerably with time. Products are normally sold at below open-market price when under a contractual arrangement. 

Utility costs vary enormously. This is especially true of fuel costs. Not only do costs vary considerably between different fuels (coal, oil, natural gas), but costs also tend to be sensitive to market fluctuations. Contractual relationships also have a significant effect on fuel costs. The price paid for fuel may depend very much on how much is purchased. 

Economics. As with the alkyl tin stabilizers, the market pricing of the mixed metal stabilizers tend to be directed by the particular appHcation. The calcium—zinc and barium—cadmium packages are typically used at 2.0—4.0 parts per hundred of PVC resin (phr) in the formulation. These completely formulated products are sold for 2.50— 4.40/kg for the Hquid products and 3.20— 6.50/kg for the soHds and pastes. The higher efficiency products aimed at rigid appHcations tend toward the higher end of the cost range. 

The basic metal salts and soaps tend to be less cosdy than the alkyl tin stabilizers for example, in the United States, the market price in 1993 for calcium stearate was about 1.30— 1.60, zinc stearate was 1.70— 2.00, and barium stearate was 2.40— 2.80/kg. Not all of the coadditives are necessary in every PVC compound. Typically, commercial mixed metal stabilizers contain most of the necessary coadditives and usually an epoxy compound and a phosphite are the only additional products that may be added by the processor. The requited costabilizers, however, significantly add to the stabilization costs. Typical phosphites, used in most flexible PVC formulations, are sold for 4.00— 7.50/kg. Typical antioxidants are bisphenol A, selling at 2.00/kg Nnonylphenol at 1.25/kg and BHT at 3.50/kg, respectively. Pricing for ESO is about 2.00— 2.50/kg. Polyols, such as pentaerythritol, used with the barium—cadmium systems, sells at 2.00, whereas the derivative dipentaerythritol costs over three times as much. The P-diketones and specialized dihydropyridines, which are powerful costabilizers for calcium—zinc and barium—zinc systems, are very cosdy. These additives are 10.00 and 20.00/kg, respectively, contributing significantly to the overall stabilizer costs. Hydrotalcites are sold for about 5.00— 7.00/kg. 

In the fuel cell hydrogen is used two to three times as efficiendy as in an internal combustion engine. Hence, when utilized in a fuel cell, hydrogen can cost two to three times that of more conventional fossil fuels and stiU be competitively priced, ie, as of this writing the market price for hydrogen when used in a fuel cell and produced by electrolysis is competitively priced with gasoline. 

The concentration of most metals in the earth s cmst is very low, and even for abundant elements such as aluminum and iron, extraction from common rock is not economically feasible. An ore is a metallic deposit from which the metal can be economically extracted. The amount of valuable metal in the ore is the tenor, or ore grade, usually given as the wt % of metal or oxide. Eor precious metals, the tenor is given in grams per metric ton or troy ounces per avoirdupois short ton (2000 pounds). The tenor and the type of metallic compounds are the main characteristics of an ore. The economic feasibihty of ore processing, however, depends also on the nature, location, and size of the deposit the availabihty and cost of a suitable extraction process and the market price of the metal. 

The cost of various silver compounds is a function of the silver market price. In 1980, the estimated usage of silver ia the United States was 3730 metric tons (120 X 10 troy oz) (23). This silver is derived from silver mined within the United States silver recycled or reclaimed from secondary sources, eg, coiaage, flatware, jewelry, and photographic materials and imported silver. In 1980, Canada, Mexico, and Pern, the principal exporters of silver to the United States, shipped 1670 tons (53.8 x 10 troy oz) as silver buUion and silver compounds. U.S. imported 2799 t and exported 964 t ia 1988 (23). 

The production of steel is of great importance in most countries because modem civilization depends heavily on steel, the raw material for many industries. As a result, most countries have an active steel industry, which at one time was heavily subsidized but as of this writing is increasingly privatized. The world trade in steel was frequently a source of hard currency where the United States was the main contributor. Trade is much more at market prices that reflect the real cost of production. Under these conditions, the United States in its own market is very often the low cost producer following massive cost reduction in the 1980s. The United States can export a few million tons per year at a profit. 

The pricing of carbon black feedstocks depends on their alternate market as residual fuel oil, especially that of high sulfur No. 6 fuel oil. The actual price is deterrnined by the supply/demand relationships for these two markets. Feedstock cost contributes about 60% of the total manufacturing cost. The market price of carbon black is strongly dependent on the feedstock cost as shown in Figure 8. 

A related problem is the allocation of costs when a raw material for one process operation is produced internally by another process operation of the same organization (17). The transfer or captive price assigned to the raw material can range from the production cost to a market price that reflects a total profit margin for the material producer, depending on the accounting procedures adopted. 

Tbe necessity to achieve shorter press times is omnipresent within the wood industry, based on the constant pressure on costs and prices. Increased production rate gives the chance to reduce production costs, as long as the market takes up the surplus products. 

Inputs and outputs usually can be valued according to market price. The opportunity cost of any choice is the best opportunity that has to be given up to make that choice. For the firm, the opportunity cost of oil or natural gas is measured by the price the firm must pay for it. That does not imply that the firm will always choose the cheapest fuel, because the costs of using the fuel must also be considered. Even in a sit-... 

In these restructured electric markets, prices will be determined more by market forces and less by regulatory proceedings. To some, introducing competition will promote more efficient markets, providing the proper financial incentives for firms to enter or leave the industiy. In this way, consumers will benefit from lower production costs and, hcncc, reduced electricity prices. To others, restructuring will increase electricity prices for some customers, sacrifice the current environmental and social benefits, and jeopardize system reliability of the status quo. 

Market prices of energy often diverge from the true cost to society of consuming that energy. Two of the most common reasons for that divergence are external costs and subsidies, both of which make consumers think that energy is less expensive to society than it really is, and hence lead to more consumption of energy than would be economically optimal. 

According to J. M. Griffin and H. B. Steele (1986), external costs exist when the private calculation of costs differs from society s valuation of costs. Pollution represents an external cost because damages associated with it are borne by society as a whole, not just by the users of a particular fuel. Pollution causes external costs to the extent that the damages inflicted by the pollutant are not incorporated into the price of the fuel associated with the damages. External costs can be caused by air pollution, water pollution, toxic wastes, or any other damage to the environment not included in market prices for goods. 

In the final analysis, market price and sales volume are functions of the quality standards offered and the buyer s degree of confidence that the product will conform to the standards. Maintenance of buyer s confidence requires inspection to screen out all nonconforming products, or control over variability of quality during production and distribution to a degree where few, if any, products fail to meet the standards. Screening inspection of the finished product cannot improve quality it merely serves to segregate unacceptable from acceptable product, and results in loss of production capacity and costly waste and salvage. The second consideration provides the only sound basis for quality control in frozen food production and distribution. It operates on the old principle that an ounce of prevention is worth a pound of cure. ... 

A further benefit is that this treatment makes the uncertainties more explicit. If the payback time is five years, then it is clear that the calculated benefit hangs on estimates of markets, costs, and prices up to five years ahead the shorter the interval, the less the uncertainty. In troubled economic times, short payback strategies may be deliberately sought. 

These issues of scarcity, high environmental costs and sustainable use will ultimately be reflected in the market price of resources. It is therefore economically sensible to plan for significantly higher costs for some of these materials in the future. Trying to avoid the use of scarce, damaging or depleting resources therefore brings both environmental and financial benefits. 

Figure 2.2 shows the cash flow pattern for a typical project. The cash flow is a cumulative cash flow. Consider Curve 1 in Figure 2.2. From the start of the project at Point A, cash is spent without any immediate return. The early stages of the project consist of development, design and other preliminary work, which causes the cumulative curve to dip to Point B. This is followed by the main phase of capital investment in buildings, plant and equipment, and the curve drops more steeply to Point C. Working capital is spent to commission the plant between Points C and D. Production starts at D, where revenue from sales begins. Initially, the rate of production is likely to be below design conditions until full production is achieved at E. At F, the cumulative cash flow is again zero. This is the project breakeven point. Toward the end of the projects life at G, the net rate of cash flow may decrease owing to, for example, increasing maintenance costs, a fall in the market price for the product, and so on.

As discussed above, the value of P used above will be less than the value listed on the stock exchange. It is equal to the amount received per share minus the cost per share of issuing and selling the stock. P is usually about 80% of the current market value. In general, for the chemical industry the dividends are about 3% of the market price of the stock. Chemical Week lists the dividends paid in each issue. 

Following an EAL approach, traditionally regulatory systems originate from the presence of market failure in our specific case, the environment appears as a "public good" that may not be appropriated and has no market price the damage to the environment is a case of "externality," in that it is fully or partly a social cost that is not internalized into the accounts of the parties causing it.2 So the comparison of different instruments can consider how they may play a role in correcting malfunction and subsequent inefficiencies [7]. 

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