Interest rates and investment move in the same direction when demand shifts toward ________-lived equipment, producing a ________ shift in the IS curve

Normal rate of return is

A) accounting profit. B) an explicit cost. C) economic profit. D) the amount that must be paid to obtain investment in a business.

If a regulatory commission wishes to allow a firm to earn a normal rate of return, it should set price equal to: a. marginal revenue

b. marginal cost. c. average total cost. d. average variable cost.