If Andre Preneur puts together a company that yields a profit of $40,000 per year and this profit stream is expected to continue indefinitely, what price can he sell the company for if the discount rate equals 8 percent?

_______________is a type of cost-benefit decision making that compares the extra benefits to the extra cost of an action.

Fill in the blank(s) with the appropriate word(s).

Which of the following statements is true?

A) It is easier for a person to optimize when he has less information. B) Optimization implies choosing the best option from a set of alternatives. C) People always successfully optimize given the limited information they have. D) Optimization is an easy process, and all economic agents are perfect optimizers.