An oil producer discovers an oil supply in Texas that can be pumped for a profit of $50 per barrel now, $60 per barrel in three years, $80 per barrel in five years, or $90 a barrel in seven years. The current market rate of interest is 3 percent. When should the oil producer extract the oil to obtain the most profit per barrel in present value terms?

The above figures show the market for oranges. Which figure(s) shows the effect of existing orange growers increasing the size of their orange groves?

A) Figures A and C B) Figures B and D C) Figure A D) Figure D

Refer to Table 14-6. What price will Sturdy Homes charge and what profit does Sturdy Homes expect to make?

A) Price = $12,000; expected profit = $3 million B) Price = $8,000; expected profit = $7 million C) Price = $8,000; expected profit = $4 million D) Price = $10,000; expected profit = $5 million