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29 August, 10:14

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 whole numbers.

a. what is its percentage rate of return

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  1. 29 August, 10:40
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    The normal rate of profit in the economy is 5 percent. This firm is earning $5.50 on every $50 invested by its founders. Since the firm is earning $5.50 on every $50 invested, the percentage rate of return is computed by ($5.50 / $50) x 100) which will result to 11%
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