Author Question: An investment pays 100 at the end of each of the three next years. No additional payments will ever ... (Read 75 times)

beccaep · **on:** Jun 29, 2018

An investment pays 100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately

A) 250.
B) 272.
C) 288.
D) 300.

Question 2

In the above figure, if the market is competitive and unregulated, then at the equilibrium amount of output the marginal social benefit is

A) less than the marginal cost to producers.
B) greater than the marginal social cost.
C) equal to the marginal cost to producers.
D) equal to the marginal private benefit from consumption.