Hector's wealth is zero, he expects to work for another 45 years at a constant salary of $80,000 and live for another 60 years. Yearly taxes are $20,000, and Hector received a one-time tax rebate of $5,000 during his first year of work
If Hector completely smooths consumption over his lifetime, his annual consumption is A) $37,516.67.
B) $44,916.67.
C) $45,083.33.
D) $60,111.11.
C
Economics
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What will be an ideal response?
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In the above figure, if this natural monopolist were forced to use marginal cost pricing, it would sell the product at the price
A) A. B) C. C) E. D) F.
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