The expected rate of return on capital is found by dividing the expected resource cost per year by the marginal revenue product.

Name: The expected rate of return on capital is found by dividing the expected resource cost per year by the marginal revenue product.
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Question

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The expected rate of return on capital is typically calculated by dividing the expected net income or profit by the total invested capital, not by dividing the expected resource cost per year by the marginal revenue product.

The Expected Rate of Return on Capital Is Found by Dividing