If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent, your rate of economic profit is

Name: If most businesses in an industry are earning a 13 percent rate of return on their assets, but your firm is earning 23 percent, your rate of economic profit is
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Quizplus · Accepted Answer

Economic profit is the difference between the firm's rate of return and the average rate of return in the industry. Here, it is 23% - 13% = 10%.

If Most Businesses in an Industry Are Earning a 13