If a project costs $3,500 today and pays a return of $4,200 next year, what is the highest interest rate at which the project should be undertaken?

The expected yield on an asset with two possible outcomes is equal to the

A) difference between the two outcomes. B) sum of the possible outcomes multiplied by their respective probabilities. C) standard deviation of the two outcomes. D) product of the two outcomes.

At an output level of 100, a monopolist faces MC = 15 and MR = 17. At output level q = 101, the monopolist faces MC = 16 and MR = 15. To maximize profits, the firm

A) should produce 100 units. B) should produce 101 units. C) The firm cannot maximize profits. D) The firm is not a monopoly.