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?

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?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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?
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Urmila
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