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What is their rate of return earned by most firms in the

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There are 300 purely competetive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $24 for every $300 invested. What is their percentage rate of return?

The other two dairies have a cost structure that generates profits of $22 for every $200 invested. What is their rate of return earned by most firms in the industry in the long-run equilibrium?

Reference no: EM13332926

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