Congratulations! you have just won the lottery! you now must choose between receiving an immediate payment of $5 million or a $500,000 payment at the end of each year for the next 20 years (a total of $10 million). how much is the recurring $500,000 option worth today? assume the interest rate as 10% .

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.