If most firms in an industry are earning a 7 percent rate of return on their assets, but your business is earning 9 percent,your rate of economic profit isminus 2 percent.2 percent.9 percent.16 percent.

The economic profit is the difference between revenue and total cost. Here total cost includes…

Answered: If most firms in an industry are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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30.What is true of a firm's production if it operates in a perfectly competitive market in long-run equilibrium? Marginal revenue = demand = marginal cost > average total cost Marginal revenue = marginal cost = average fixed cost Average total cost = price = average variable cost Marginal cost < Marginal revenue Price = marginal cost = average total cost
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If most firms in an industry are earning a 7 percent rate of return on their assets, but your business is earning 9 percent, your rate of economic profit is minus 2 percent. 2 percent. 9 percent. 16 percent.