a. What is the percentage rate of return for these 298 dairies? percent. b. The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their percentage rate of return? percent. c. Assuming that the normal rate of profit in the economy is 9 percent, and farms cannot copy each others' technology, will there be entry or exit? (Cick to select) Will the change in the number of farms affect the two that earn $22 for every $200 invested? (Click to select) What will be the rate of return earned by most farms in the industry in long-run equilibrium? percent. If farms can copy each others' technology, what will be the rate of return eventually earned by all farms? O percent.

a. What is the percentage rate of return for these 298 dairies? percent. b. The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their percentage rate of return? percent. c. Assuming that the normal rate of profit in the economy is 9 percent, and farms cannot copy each others' technology, will there be entry or exit? (Cick to select) Will the change in the number of farms affect the two that earn $22 for every $200 invested? (Click to select) What will be the rate of return earned by most farms in the industry in long-run equilibrium? percent. If farms can copy each others' technology, what will be the rate of return eventually earned by all farms? O percent.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $18 for every $300 invested. Instructions: Enter your answers as a whole number. a. What is the percentage rate of return for these 298 dairies? percent b. The other two dairies have a cost structure that generates profits of $26 for every $200 invested. What is their percentage rate of return? percent c. Assuming that the normal rate of profit in the economy is 10 percent, and that firms cannot copy each other's technology, will there be entry or exit? (Click to select) ♥ d. Will the change in the number of firms affect the two that earn $26 for every $200 invested? O No, because those two firms are too small. O No, because the exiting firms didn't belong in the industry. O Yes, because those two firms can claim a larger market share. O Yes, because those exiting firms will spread their technology. e. What will be the rate of return earned by…
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