The Table Shows the Quantity of Gold Bars in Thousands

question 113

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.

---

Definitions:

NSF Notation

An abbreviation for "Non-Sufficient Funds," used by banks to indicate that a check cannot be honored because the account holder's account lacks the funds to cover it.

Sales Returns And Allowances

Accounts used to record reductions in revenue from previously recorded sales due to product returns or concessions granted to customers for damaged or unsatisfactory goods.

Defective Furniture

Furniture that has imperfections or faults diminishing its value or utility, often leading to discounts or the need for replacement.

Collection Fee

A charge assessed for the service of collecting delinquent payments on loans or bills.