A payment of $105 next year can be more valuable than a payment of $100 now

The figure above shows the demand, marginal revenue, and marginal cost curves for Paul's Parrot pillows, a single-price monopoly producer of pillows stuffed with parrot feathers. When Paul maximizes his profit, his total economic profit is

A) $60. B) $405. C) $0. D) $210,000. E) unknown because more information is needed to determine Paul's profit.

Assume you pay a premium of $0.70/bu for a call option with a strike price of $6.00/bu and that the current futures price is $6.50/bu. Then, the option is:

A. In-the-money B. At-the-money C. Out-of-the-money D. Worthless