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Author Question: The difference in present value between a perpetuity that promised 1 per year starting today and one ... (Read 36 times)

fasfsadfdsfa

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on: Jul 1, 2018
The difference in present value between a perpetuity that promised 1 per year starting today and one that promised 1 per year starting next year is
 a. 0.
  b. 1.
  c. 1/(1 + r).
  d. r/(1 + r).

Question 2

A monopolist who owned the entire supply of a scarce resource would set a price
 a. at about the competitive level.
  b. lower than the competitive level.
  c. higher than the competitive level but lower than what a monopoly producer of a non-scarce good would.
  d. above that which would be chosen by a monopoly producer of a nonscarce good.


ebenov

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Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

a


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