28. Suppose a competitive market is comprised of firms that face identical cost curves. The firms experience an increas in demand that results in positive profits for the firms. Which of the following events are then most likely to occur? (i) New firms will enter the market. (i) In the short run, price will rise; in the long run, price will rise further. (ii) In the long run, all firms will be producing at their efficient scale a. () and () only b. (i) and (ii) only C. (ii) and (iii) only d. (i), (i) and (ii)

Anew 2-lane road is needed in a part of town that is growing. at some point the road will need 4 lanes to handle the anticipated traffic. if the city's optimistic estimate of growth is used, the expansion will be needed in 4 years and has a probability of happening of 40%. for the most likely and pessimistic estimates, the expansion will be needed in 8 and 15 years respectively. the probability of the pessimistic estimate happening is 20%. the expansion will cost $ 4.2 million and the interest rate is 8%. what is the expected pw the expansion will cost?