Suppose you were given a gift of a gold mine that generates $1,000 of net income every year, indefinitely. And suppose the equilibrium rate of interest is 5 percent. What is the present value of that gold mine?

In the Solow model, if f(k) = 2k0.5, s = 0.1, n = 0.1, and d = 0.05, what is the value of f(k) at equilibrium?

A) 2/3 B) 4/3 C) 2 D) 8/3

In the above figure, this profit-maximizing monopolistic competitive firm will realize an economic profit of

A) -$1,400. B) $2,100. C) $1,400. D) $700.