Suppose You Receive $3,000 a Year in Years One Through

question 121

Multiple Choice

Suppose you receive $3,000 a year in years one through four, $4,000 a year in years five through nine, and $2,000 in year 10, with all the money to be received at the end of the year.If your discount rate is 12%, what is the present value of these cash flows?

• A)18,926.12
• B)19,560.80
• C)20,651.24
• D)24,175.00

Analyze the effect of changes in market price on a firm’s marginal revenue, output level, and economic profit.

Distinguish between economic profit, total revenue, and total cost.

Understand the concept of the firm’s short-run supply curve and its derivation.

Recognize the long-run adjustments in the market due to economic profits or losses.

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Definitions:

Storage

In cognitive psychology, the retention of information or experiences in the brain for later retrieval, an essential component of the memory process.

Retrieval

The process of accessing and recalling information or memories from one's mind.

Fuzzy Trace Theory

States that memory is best understood by considering two types of memory representations: (1) verbatim memory trace; and (2) fuzzy trace, or gist. According to this theory, older children’s better memory is attributed to the fuzzy traces created by extracting the gist of information.

Verbatim Memory Trace

The detailed and precise recall of exact details, such as words or images, from memory.