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20) If "r" is the interest rate that prevails between the present and the future, then the opportunity cost of consuming $1 today is $_ of lost future consumption. A)1/ B) 1-r C) 1+r D) 1/(1+r) E) 1
21) If"," is the interest rate that prevails between the present and the future, then the opportunity cost of consuming $1 today is $_ _ of lost future consumption. A) 1/r B) 1- C) 1+r D) 1/(1+r) E)1
Question 3. (25 marks) Let y = f(1) be defined by f(x) = ln(22 – 4). (a) Solve for r when f(0) = 0. (b) Use a sign diagram to determine the values of r for which fr) is defined. (c) Derive f'(.). (d) Use f'(x) to determine when f(x) is increasing and/or decreasing. (e) Derive and use f" () to show if f(x) convex or concave.