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.
Answer: B
Economics
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A debtor's quantity of credit demanded and the rate of interest are likely to be:
A) positively correlated. B) unrelated. C) negatively correlated. D) positively related if the rate of interest is below 10% and negatively related if it is above 10%.
Economics
A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's total cost?
A) $23 B) $150 C) $1,000 D) $1,150 E) $20
Economics