Synthetic Rubber

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 ✦338 Petroleum: 8 bbl × $30/bbl × r 1.5 × border 0.94 × λ 1.00 = ✦338 + (D + M_o)α_e Capital ✦218 Depreciation and maintenance ✦150 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 ✦90 E 1,800 kWh per tonne × p_e ✦0.05 per kWh = ✦702

A.V. = rP*_world Accounted value ✦1,257 per tonne World price $810 per tonne plus freight and insurance 3.47% = P* $838 × 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. = ✦1,257

Revenue = A.V. × Q Accounted revenue ✦283 m p.a. Domestic: 224,800 t × ✦1,257 = ✦283 m = ✦283 m

Surplus = (A.V. − A.C.) × Q − levies Accounted surplus ✦125 m p.a. Revenue ✦283 m − cost ✦702 × 224,800 t = ✦125 m Distributed 40% to reinvestment, 20% to the municipal aggregate and 40% swept to the Treasury. = ✦125 m