The Table Shows the Quantity of Gold Bars in Thousands

question 23

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) . If the current price of a bar of gold is $35,000, how many bars (in thousands) should OZ extract and sell this year in order to maximize profits?

• A)2
• B)3
• C)4

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Definitions:

Consideration

Something of value (such as money, service, promise, or goods) that is given by both parties to a contract that compels mutual obligation.

Charitable Purpose

involves activities carried out for the benefit of the public, such as alleviating poverty, advancing education, religion, or other activities serving the public interest.

Promised Gift

A commitment to transfer ownership of an item or property to someone else without expecting something in return.

Consideration

A value promised in a contract that each party agrees to exchange, which is necessary for a valid agreement.