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The Table Shows the Quantity of Gold Bars in Thousands

Question 78

Multiple Choice

  The table shows the quantity of gold bars in thousands, the extraction cost for each thousand bars (in millions of dollars) , and the user cost of each thousand bars (in millions of dollars) facing the OZ Mining Company this year (all costs are marginal) . Suppose that a new government regulation is going to shut down OZ's mining operation one year from now. If the current price per bar of gold is $20,000, how many bars (in thousands) should OZ extract and sell this year? A) remain unchanged. B) decrease by 500. C) increase by 500. D) decrease by 250. The table shows the quantity of gold bars in thousands, the extraction cost for each thousand bars (in millions of dollars) , and the user cost of each thousand bars (in millions of dollars) facing the OZ Mining Company this year (all costs are marginal) . Suppose that a new government regulation is going to shut down OZ's mining operation one year from now. If the current price per bar of gold is $20,000, how many bars (in thousands) should OZ extract and sell this year?


A) remain unchanged.
B) decrease by 500.
C) increase by 500.
D) decrease by 250.

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