Which One of the Following Is an Ordinary Annuity, but Not

question 90

Multiple Choice

Which one of the following is an ordinary annuity, but not a perpetuity?

• A)$75 paid at the beginning of each monthly period for 50 years
• B)$15 paid at the end of each monthly period for an infinite period of time
• C)$40 paid quarterly for 5 years, starting today
• D)$50 paid every year for ten years, starting today
• E)$25 paid weekly for 1 year, starting one week from today

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Definitions:

Purely Competitive Firm

A business that operates in a market where there are many buyers and sellers, the products are homogenous, and there are no barriers to entering or exiting the market.

Maximize

To increase to the greatest possible amount or degree, often used in the context of optimizing outcomes such as profit, efficiency, or utility in various fields.

Total Fixed Cost

The total of all costs that do not change with the level of production or sales activities within a company.

Purely Competitive Market

A market structure characterized by many buyers and sellers, no barriers to entry, and a homogeneous product, leading to the firms being price takers.