Refer to Scenario 13.9. If this game is repeated over an infinite ...

[cagreen833]

Refer to Scenario 13.9. If this game is repeated over an infinite or uncertain horizon, the most likely observed behavior will be that
 
  A) both firms pollute.
  B) only Lago pollutes.
  C) only Nessie pollutes.
  D) neither firm pollutes.
  E) the firms alternate polluting in different periods.

Question 2

Your 65-year-old father is going to retire next year. He would like to have an income of 20,000 per year for the remainder of his life.
 
  If he is expected to live for ten more years, write an algebraic expression to indicate the amount of money he needs today to pay him this sum of money if the interest rate is 10 percent.

[okolip]

Answer to Question 1

D

Answer to Question 2

PDV = (20,000/1.1 ) + (20,000/1.12 ) + ... + (20, 000/1. 110 )