The normal rate of return is the
A) average rate of return earned in an industry at a given point in time.
B) opportunity cost of capital.
C) return on capital associated with zero accounting profits.
D) the amount paid to an investor when the firm is an on-going concern.
Correct Answer:
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Q135: When an entrepreneur invests his own financial
Q136: Economic profits equal
A) accounting profits.
B) accounting profits
Q137: Accounting profits are total revenues minus
A) all
Q138: Economic profits are equal to
A) total revenues
Q139: Suppose that you open your own business
Q141: A basic tenet of the theory of
Q142: If your business earns $10,000 in revenues,
Q143: Economic profit is always
A) greater than accounting
Q144: Suppose your donut shop earns $25,000 in
Q145: Accounting profit will always be
A) more than
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