Which one of the following statements concerning interest rates is correct? question 3 options: savers would prefer annual compounding over monthly compounding. the effective annual rate decreases as the number of compounding periods per year increases. for any positive rate of interest, the effective annual rate will always exceed the annual percentage rate. borrowers would prefer monthly compounding over annual compounding. the effective annual rate equals the annual percentage rate when interest is compounded annually.

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?