A. Will you invest a project that requires a $200,000 today and returns $50,000 at the end of the first year, $70,000 at the end of the second year and $100,000 at the end of the third year? Assume a discount rate. of 5 percent
B. An economist estimated that the total cost function of a single-product firm is TC-125+5Q+3.50Q^2. Determine the average variable cost (AVC) of producing the 5 units.
C. An economist estimated that the total cost function of a single-product firm is TC-125+5Q+3.5Q^2. Determine the marginal cost (MC) of producing the 5th unit? [No derivative is required for this question.
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