Teal5257 Teal5257

02-11-2022
Business

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a firm in a purely competitive industry has a typical cost structure. the normal rate of profit in the economy is 5 percent. this firm is earning $5.50 on every $50 invested by its founders. instructions: enter your answers as a whole number. a. what is its percentage rate of return? percent b. is the firm earning an economic profit? (click to select) if so, how large? percent c. will this industry see entry or exit? (click to select) d. what will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium? percent

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