According to the principle of asset valuation, the value of any asset is equal to
a. the sum of all the future benefits it generates
b. the revenue it generates during its first year
c. the sum of the present values of all the future net benefits it generates
d. the ratio of its final year's benefits to its price
e. the sum of all future benefits it generates minus its price
C
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The above figure shows a graph of a market for pizzas in a large town. At a price of $7, what is the amount of excess demand?
A) 0; there is excess supply at $7. B) 20 units C) 30 units D) 10 units
If an agent is risk averse and a principal is risk neutral, if the agent pays the principal a fixed fee
A) all risk is eliminated. B) the risk neutral person bears all the risk while the risk averse person bears none. C) the risk averse person bears all the risk while the risk neutral person bears none. D) the principal and agent share risk equally.