Existing firms in the rental car industry will stay in the industry but will not want to undertake any investment projects other than to replace depreciating capital stock if the normal rate of return in the industry is ________ and the return that firms earn in this industry equals exactly ________.
A. 12%; 9%
B. 6%; 6%
C. 4%; 7%
D. 1%; 2%
Answer: B
Economics
You might also like to view...
What does the assumption of perfect knowledge include?
What will be an ideal response?
Economics
Technological change is decreasing competition in the market for media
a. True b. False
Economics
Most economies in the world are
a. traditional. b. market. c. command. d. mixed.
Economics
The idea of linking public school teacher salaries to student outcomes is basically an attempt to impose a ________ compensation scheme on teachers.
A. profit sharing B. work-for-pay C. piece rate D. time rate E. tournament
Economics