As the Winning Contestant in a Television Game Show,you Are

question 42

Multiple Choice

As the winning contestant in a television game show,you are considering the prizes to be awarded.You must indicate to the sponsor which of the following two choices you prefer,assuming you want to maximize your wealth.Assume it is now January 1,and there is no danger whatever that the sponsor won't pay off. Which one would you choose?

• A) Choice 1
• B) Choice 2
• C) Choice 1, if the payments were made at the end of the year.
• D) The choice would depend on how soon you need the money.
• E) Either one, since they have the same present value.

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Definitions:

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The process and industry involved in the manufacturing and assembly of motor vehicles.

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The agricultural practice of cultivating corn or maize, used for various purposes including food, feed, and biofuel.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.

Soft-Drink

A non-alcoholic beverage that is usually carbonated and flavored, such as sodas and colas.