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Profits from Innovation Represent Greater Than Normal Returns to Capital,because

Question 68

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Profits from innovation represent greater than normal returns to capital,because in the case of innovation


A) it is extremely difficult to calculate an expected rate of return.
B) borrowers are often taken advantage of by lenders.
C) no one wants to lend innovators any money to finance their businesses.
D) it leads to the formation of a natural monopoly.
E) the rate of return generally exceeds the interest rate.

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