The rate of return on capital that is just sufficient to keep owners and investors satisfied is called
A) economic profit.
B) a minimum efficient scale.
C) the price-earnings ratio.
D) a normal rate of return.

Question

Quizplus · Accepted Answer

A normal rate of return is the minimum profit necessary to maintain the engagement of owners and investors in a business, as it meets their expected level of return without providing excess profit.

The Rate of Return on Capital That Is Just Sufficient