The table shows the quantity of gold bars (in thousands) and the extraction cost per gold bar (in dollars) for the Acme Company. Use these data to answer the questions below. Quantity of Gold Bars (thousands) Extraction Cost ($ per bar) 0 30,000 1 35,000 2 40,000 3 45,000 4 50,000 5 55,000 Instructions: Enter your answers as a whole number. a. If the user cost is $10,000 and the current price of a gold bar is $55,000, how many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits? bars b. Now suppose that the user cost decreases by $5,000 such that the new user cost is $5,000, but the price remains the same. How many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits? bars
The table shows the quantity of gold bars (in thousands) and the extraction cost per gold bar (in dollars) for the Acme Company. Use these data to answer the questions below. Quantity of Gold Bars (thousands) Extraction Cost ($ per bar) 0 30,000 1 35,000 2 40,000 3 45,000 4 50,000 5 55,000 Instructions: Enter your answers as a whole number. a. If the user cost is $10,000 and the current price of a gold bar is $55,000, how many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits? bars b. Now suppose that the user cost decreases by $5,000 such that the new user cost is $5,000, but the price remains the same. How many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits? bars
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
The table shows the quantity of gold bars (in thousands) and the extraction cost per gold bar (in dollars) for the Acme Company. Use these data to answer the questions below.
| Quantity of Gold Bars (thousands) | Extraction Cost ($ per bar) |
| 0 | 30,000 |
| 1 | 35,000 |
| 2 | 40,000 |
| 3 | 45,000 |
| 4 | 50,000 |
| 5 | 55,000 |
Instructions: Enter your answers as a whole number.
a. If the user cost is $10,000 and the current price of a gold bar is $55,000, how many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits?
bars
b. Now suppose that the user cost decreases by $5,000 such that the new user cost is $5,000, but the price remains the same. How many bars (in thousands) should Acme Company extract and sell this year in order to maximize profits?
bars
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