Which One of the Following Is an Example of an Annuity

question 11

Multiple Choice

Which one of the following is an example of an annuity?

• A) the receipt of $50 in January, March, April, June, August, September and December
• B) the payment of $259 a month for three consecutive years
• C) the payment of $389 in January, $200 in February, and $200 in March
• D) the receipt of $100 a month for three months and then $150 a month for two months

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Definitions:

Economic Profit

The remaining amount after subtracting both explicit and implicit costs from a company's total income.

Average Total Cost

The total cost divided by the total quantity produced, representing the cost per unit of output.

Marginal Revenue

The uplift in revenue achieved by marketing an additional unit of a product or service.

Marginal Cost

The cost incurred by producing one additional unit of a product, a key concept in economic decision-making regarding production levels.