If the interest rate at which you can lend funds is r percent per year, then the present value of Y dollars to be received next year is
a. (1 + r)Y
b. Y / r
c. Y
d. Y - r
e. Y / (1 + r)
E
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We would expect the cross-price elasticity of demand between dress shirts and ties to be ________, indicating that they are ________
A. positive; secondary goods. B. negative; complements. C. negative; substitutes. D. positive; complements.
Figure 5-15
Hal initially consumes the combination marked as A in Figure 5-15. After his income increases, Hal consumes combination B. We can conclude that Hal views
A. X as an inferior good and Y as a noninferior good. B. X as a noninferior good and Y as an inferior good. C. both X and Y as noninferior goods. D. both X and Y as inferior goods.
The more widely held and accepted credit cards are, the more money people would be expected to hold in the form of currency
a. True b. False Indicate whether the statement is true or false
Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. If he only produced gloves, what would Dan's profit be if he produces the profit-maximizing quantity?
A. $2,000 B. $2,200 C. $2,500 D. $3,100