Existing Firms in the Rental Car Industry Will Stay in the Industry

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) 6%; 6%
B) 4%; 7%
C) 12%; 9%
D) 1%; 2%