Another term to describe the normal rate of return on capital is the

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The normal rate of return on capital is the opportunity cost of capital, which is the return that a business could earn by investing in an alternative project that carries similar risks. This is the minimum rate of return that a business must earn to compensate for the use of its resources. The other options are incorrect: A) Fixed cost of capital refers to the cost of raising capital that is fixed and doesn't vary based on the amount of capital raised. B) Depreciation cost of capital is the cost associated with the depreciation of the capital assets over time. D) Monopoly rent is the excess profit earned by a monopolist due to the absence of competition.

Another Term to Describe the Normal Rate of Return on Capital