Suppose your uncle offers you $100 today or $150 in 10 years. You would prefer to take the $100 today if the interest rate is
a. 3 percent.
b. 4 percent.
c. 5 percent.
d. None of the above is correct.
c
You might also like to view...
A Cobb-Douglas production function is
A) a production function for the textile industry. B) a particular production function that fits the data well. C) a production function applicable in the service industry. D) the production function that Henry Ford applied in his firm.
Think of a firm that has a monopoly producing milk. The firm's demand curve is
a. identical to the demand curve for milk facing the industry b. identical to its marginal revenue curve c. tangent to the firm's ATC curve d. tangent to its marginal revenue curve e. more elastic than the demand curve of any perfectly competitive firm producing milk
Suppliers often reduce prices because they
a. have a shortage of products to sell b. have a surplus of products to sell c. want to decrease consumer demand d. want to reduce profits and go out of business
The additional cost associated with hiring one additional unit of some factor input, such as labor, is referred to as
A) marginal physical product of labor. B) marginal revenue cost. C) marginal factor cost. D) marginal revenue product.