Refer to the above figure. The profit maximizing quantity for this firm is

Refer to the scenario above. The hypothesis of the model is that:

A) college graduates will earn 80 percent more than high school graduates. B) college graduates will earn 200 percent more than high school graduates. C) college graduates will earn 107 percent more than high school graduates. D) college graduates will earn 275 percent more than high school graduates.

The expected value of a future payment differs from the present discounted value in that the expected value

A. Uses a lower interest rate in its calculation. B. Assumes that future payments take place over a longer period of time. C. Takes into account the possibility of nonpayment. D. Uses a higher interest rate in its calculation.