Tracy won a $100 million jackpot. She can receive the jackpot as a $5 million payment each year for 20 years, or she can ask to receive the present value of all those payments all at once now. Assume an annual interest rate of 5 percent. If she decides to take the present value payment, about how much will she receive?

The monopolistically competitive firm's economic profits tend toward zero in the long run. Why is this so?

A) Monopolistically competitive firm's are rarely able to maintain the corporate discipline necessary to sustain profits in the long run. B) If a monopolistically competitive firm is profitable for more than 2 years, the Justice Department orders a corporate restructuring to pull the company back to a normal rate of return. C) In the long run, other firms will successfully offer substitutes for the profitable firm's product, and competition will eliminate economic profits. D) Even though the monopolistically competitive firm can successfully maintain barriers to entry, keeping competition at bay becomes very expensive.

For a firm that uses land, labor and capital as inputs, how should the inputs be utilized in order to minimize total costs?

What will be an ideal response?