Suppose that two firms are producers of spring water, which can be obtained at zero cost. The market demand curve for their combined output is p = 100 - Q where p is the price and Q is the amount of spring water sold by both together. If the two producers act in accord with the Cournot model, their combined output will be

If the economy's resources are fully employed and prices are starting to rise, the Fed can ________ the money supply in an attempt to reduce inflationary pressure. If this action is well-calculated, output will ________

A) increase; rise B) increase; remain close to its potential level C) decrease; remain close to its potential level D) decrease; fall

Congratulations!You have just won a $1,000,000 (delayed) prize in the lottery. Your state offers you the following alternatives:you can take $750,000 now, or 10 years from now you can receive the full $1,000,000

The delay isn't a problem, because you weren't planning to use any of the prize money for at least 10 years. If you take the lump sum now, you figure you can invest it at an annually compounded rate of 3 percent. Should you take the $750,000 now, or wait to get the full $1,000,000 in 10 years?Why or why not?Show any calculations.