2.2 Because Barrick Gold Corporation is the world’s largest gold producer, it has market power in setting the price of gold. Its mines include the Cortez and Goldstrike Mines, both in Nevada. Although the purity of the ore is the same, say that the managers have noticed that for the last ton of ore mined, the marginal cost at the Goldstrike Mine exceeds the marginal cost at the Cortez Mine.

Are the managers of Barrick Gold Corporation maximizing the firm’s profit? Explain your answer.