What do you recommend they do

Reference no: EM132151892

Question: Japan is trying to decide if they should increase their imports of LNG. They are currently importing 100 MMBtus at a price of $7/MMBtu. If they import 110 MMBtus, they will drive the price up to $7.50/MMBtu, given their monopsonistic position in the LNG import market. Alternatively, they can turn to a renewable backstop fuel that is available at $8/MMBtu. What do you recommend they do? Evaluated from an econmic point of view.

Reference no: EM132151892

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