Lubricants

A.C. = w₀L_hS_f Labour ✦56.2 Shadow wage w₀ ✦16 an hour × L_h 1.5 hours per tonne × skill factor S_f 2.34 S_f for industry: training ✦45,000 against ✦45,000, queue 20 hours against 48 + Σ q_iP_irλ_i Materials ✦296 Petroleum: 7 bbl × $30/bbl × r 1.5 × border 0.94 × λ 1.00 = ✦296 + (D + M_o)α_e Capital ✦131 Depreciation and maintenance ✦90 per tonne × financing 1.45 × waste factor α_e 1.00 Financing is interest at 6% on equipment's average value over a 15-year life. α_e is 1.00 when maintenance hours and defects are on target. + Ep_e Energy ✦20 E 400 kWh per tonne × p_e ✦0.05 per kWh = ✦503

A.V. = rP*_world Accounted value ✦1,394 per tonne World price $900 per tonne plus freight and insurance 3.22% = P* $929 × r 1.5 crowns per US dollar Import parity: the price at the Commonwealth border for a good it could otherwise import. Observed abroad, not calculated: a wasteful producer raises only its own cost. = ✦1,394

Revenue = A.V. × Q Accounted revenue ✦157 m p.a. Domestic: 112,400 t × ✦1,394 = ✦157 m = ✦157 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦100 m p.a. Revenue ✦157 m − cost ✦503 × 112,400 t = ✦100 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦100 m