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Suppose that in the year 2015, Oceanaire, Inc. planned to produce 550,000 units of its tightweight scuba tanks. Of the 550,000 it planned to produce,

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Suppose that in the year 2015, Oceanaire, Inc. planned to produce 550,000 units of its tightweight scuba tanks. Of the 550,000 it planned to produce, a fotal of 25,000 units would be added to the inventory at its new plant in Alizona. Also assume that these units have been seling at a price of 5200 each and that the price has been constant over time. Suppose further that this year the firm built a new plant for $5 million and acquired $2.5 million worth of equipment. it had no olher investment projects, and to avoid complications, assume no depreciation. Now suppose that at the end of the year, Oceanaire had produced 550,000 units but had only sold 500,000 units and that inventorios now contained 50 000 units more than they had at the beginning of the yoar. At $200 each, that means that the firm addod $10,000,000 in new inwontory This year Oceanaire actually investods (Enter your response as an integer) Oceanaire plancod to invest s (Enter your response as an integer.) Oceanaire should prodace A. less output next year since it needs to reduco its unplanned investment. B. more output next year since it neods lo add to its equipment. C. more output next yoar since it noeds to add to its unplarned investment. D. less output next year since it neods to redicice its equipment

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