A lottery promises a $250,000 prize. But the prize money is paid out in $50,000 annual installments with the first installment received today. The winner is offered the option of an immediate lump-sum payment. If the interest rate remains at 10 percent for the entire period, what is the smallest amount the winner should accept?
A. $189,540
B. $192,970
C. $208,494
D. $225,000
Answer: C
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In a competitive market with free entry and exit, if all firms have the same cost structure, then
a. all firms will operate at their efficient scale in the short run. b. all firms will operate at their efficient scale in the long run. c. the price of the product will differ across firms. d. Both a and b are correct.
Exhibit 3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
In Exhibit 9-3, what is the maximum hourly profit that GeneTech can earn from its vaccine?
A. $1,500. B. $3,000. C. $4,500. D. $10,500.
How does inflation affect people’s standards of living and savings?
What will be an ideal response?
Between the second quarter of 2006 and the first quarter of 2009, the value of housing wealth decreased by about $7 trillion.
Answer the following statement true (T) or false (F)