On Your First Through Fifth Birthdays Your Parents Placed $2,000

question 40

Multiple Choice

On your first through fifth birthdays your parents placed $2,000 into your college fund (five total deposits of $2,000 each) .The account has earned an average of 8.5% per year until today,your twenty-first birthday.How much money is in the account today?

• A)$11,733.20
• B)$37,219.70
• C)$43,714.09
• D)$42,383.41

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Definitions:

Average Variable Cost

The average amount of variable cost per unit, calculated by dividing total variable costs by the quantity of output.

Profit-Maximizing

The approach taken by an enterprise to ascertain the optimal price and output quantity for the highest profit.

MR = MC

A principle in economics stating that profit maximization occurs when marginal revenue equals marginal cost.

Perfectly Competitive Market

An economic theory describing a market where no individual buyers or sellers have the power to influence the price of a product, and where the products offered are homogenous, with no barriers to entry or exit for businesses.