A normal rate of return on investment is equal to

Question

Quizplus · Accepted Answer

The normal rate of return on investment is the minimum rate of return that an investor would require to invest their capital, taking into account the opportunity cost of their capital and other implicit costs. Therefore, the correct option is B, the opportunity cost of capital plus any other implicit costs. Option A is incorrect because accounting profit minus economic profit is not the same as a rate of return. Option C is incorrect because the normal rate of return takes into account both accounting and economic profit. Option D is incorrect because total revenue plus total accounting profit is not the same as a rate of return.

A Normal Rate of Return on Investment Is Equal to