Why do economists treat a normal rate of return on invested

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1) Why do economists treat a normal rate of return on invested capital as an element of fixed costs rather than as a profit?
2) How are "economies of scope" different from "economies of scale?" Give an example of each. Do you see any connection between either of these concepts and the recent merger between Proctor-Gamble & Gilette? Explain. 

Reference no: EM13751294

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