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 $25,000, how many bars (in thousands) should OZ extract and sell this year?
A) 4
B) 3
C) 5
D) As many as possible
Correct Answer:
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Q145: The user cost of extracting a nonrenewable
Q146: Q147: Q148: Q149: A company's extraction cost curve slopes upward Q151: Q152: Unless people can benefit from conservation, there Q153: A user cost of zero implies that Q154: The user cost of extracting a nonrenewable Q155: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A)a![]()