What will be the rate of return earned by the firms

Reference no: EM13238583

a firm in a purely competitive industry has 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. what is the percentage rate of return? is the firm earning an economic profit? if so, how large? will this industry see entry or exit? what will be the rate of return earned by the firms in this industry once the industry reaches long- run equilibrium?

Reference no: EM13238583

Questions Cloud

State what is the ration between the absorbed doses : A second worker approaches to within 5 meters behind a shield that attenuates 60% and remains there for 20.0 minutes. What is the ration between the absorbed doses for the two workers

Explain how bank will go about implementing the policy : Suppose the Federal Reserve Bank decides at its next FOMC meeting to raise the federal funds rate from around 0% to .25%. With the aid of a diagram, carefully explain how they will go about implementing this policy.

What is the final temperature : Helium gas with a volume of 2.55L , under a pressure of 1.26atm and at a temperature of 44.0?C, How many grams of helium are there? The molar mass of helium is 4.00g/mol

What should the next point be if do want to continue : A friend is explaining how supply and demand works using McDonald's hamburgers as an example. You question his examples, saying that the assumption that there must be many sellers and buyers is not true in the case of McDonald's

What will be the rate of return earned by the firms : a firm in a purely competitive industry has 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. what is the percentage rate of return

Find the charge and energy stored : Suppose you have a 9.00V battery, a 2.00 micro-Farad capacitor, and a 7.40 micro-Farad capacitor, find the charge and energy stored if the capacitors are connected to the battery in series

Find what is the interest rate for buying versus leasing : A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. Remember that lease payments occur at the start of the year.

Explain reduce the concentration of pbcl2 : How many milliliters of 0.10 M HCl would have to be added to 100 mL of a saturated solution of PbCl2 in contact with 50.0 g of solid PbCl2 to reduce the Pb2+ concentration to 0.0050 M? (Don't forget to take into account the combined volumes of the..

User Account

All Pages