Answer:
220,000 barrels per day
Explanation:
                 Fossils R Us    Green House Oils   Shale Ale
Plant and property    $900,000      $1,500,000     $1,000,000
Extraction costs         $45             $31            $40
(per barrel)
Capacity per day   100,000 barrels    140,000 barrels   80,000 barrels
In the short run, companies will continue to operate as long as the selling price is higher than the variable production costs, i.e. marginal revenue ≥ marginal costs. In this case, if the price of oil is $42 per barrel, only Green House Oils and Shale Ale will continue to operate since their production costs are lower than the selling price. Total production = 140,000 + 80,000 = 220,000 barrels
