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Answer in Microeconomics for rita #111962

Author:
April 21st, 2023

a).  normal rate of profit in the economy is 8 %

earnings=$15

invested=$150

“text{ percentage rate of return}=(15/150)*100” =10%

b). Yes.The firm earns 10%-8%=2% economic profit

c). The industry will see an entry because it is a profitable one.

d).The rate of return earned by firms in this industry once the industry reaches long-run equilibrium is 10%

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