1
answer
0
watching
775
views
29 Sep 2019
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 8 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. a. What is its percentage rate of return? percent. b. Is the firm earning an economic profit? c. If so, how large? percent. d. Will this industry see entry or exit? d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 8 percent. This firm is earning $15 on every $150 invested by its founders. Instructions: Enter your answers as whole numbers. a. What is its percentage rate of return? percent. b. Is the firm earning an economic profit? c. If so, how large? percent. d. Will this industry see entry or exit? d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?
Verified Answer
Retselisitsoe PokothoaneLv10
29 Sep 2019
Solvit Regular
30 Jul 2020
Answer verification
This is a step by step verification of the answer by our certified expert.
Subscribe to our livestream channel for more helpful videos.