Refer to the table below. What is the value of A plus B plus C plus D (A + B + C + D) or the present value of the first four payments?
The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $1,000 is made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
A) $6,200.50
B) $6,225.32
C) $6,436.27
D) $6,589.23
C) $6,436.27
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A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a year, and take over a store building that he owns and currently rents to his brother for $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his implicit costs?
a. $26,000 b. $66,000 c. $78,000 d. $52,000 e. $72,000
Graphically, consumer surplus is the area:
a. above the equilibrium price and below the demand curve. b. below the equilibrium price and above the supply curve. c. above the equilibrium price and below the supply curve. d. below the equilibrium price and above the demand curve. e. above the equilibrium price and above the supply curve.
One type of regulatory practice common for public utilities is setting a price for consumers based on the average cost of production plus the normal rate of profit expected; this is known as what kind of regulation?
a. Cost-plus regulation b. Price cap regulation c. Bundling regulation d. Antitrust regulation
Jane is willing to pay $50 for the first ice cream, $40 for the second ice cream, $30 for the third, and $20 for the fourth. If each ice cream costs $20, Jane's total consumer surplus is _____
a. $60 b. $80 c. $50 d. $30