What is a normal rate of return?
What will be an ideal response?
A normal rate of return is the amount that must be paid an investor to induce investment in a business. It is the opportunity cost of capital.
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The table above shows the total product schedule for Rick's Lawn Service, a yard care company. The total product schedule shows
A) increasing marginal returns when the 6th worker is hired. B) decreasing marginal returns when the 1st worker is hired. C) first increasing and then decreasing marginal returns. D) output first increases then increases. E) only decreasing marginal returns.
Developing countries place:
A. greater emphasis on growth and less emphasis on development than developed countries. B. greater emphasis on both development and growth than developed countries. C. less emphasis on both growth and development than developed countries. D. greater emphasis on development and less emphasis on growth than developed countries.
Under which one of the following conditions will economic theory indicate that all of a resource should be consumed in the current period?
a. Whenever the discount rate is positive b. When the marginal net benefits in the current period are always greater than the marginal net benefits in the future c. When substitute resources are available d. When the marginal net benefits in the future are not discounted e. When the users costs are positive Feedback
If a company has a cost curve of TC = 300 + 2Q + Q2 and it produces 300 units per day, then its average (total) cost is
A. $1. B. $303. C. $602. D. $300.