What will be rate of return eventually earned by all firms

Reference no: EM13242141

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? If firms, can copy each other's techonology, what will be the rate of return eventually earned by all firms?

Reference no: EM13242141

Questions Cloud

What is the magnitude of the force of a and b : Two blocks (A and B) are in contact on a horizontal frictionless surface. A 40N constant horizontal force is applied to A. The mass of A is 5.0kg and the mass of B is 20k

Depict the lewis structure of chlorous acid : Draw the Lewis structure of chlorous acid (HClO2). The result is that around Cl there are Fill in the Blank 01 (a number) bonding groups and Fill in the Blank 02 lone pair(s) of electrons.

Determine the profit maximizing level of output : a. Determine the profit maximizing level of output. b. Compute the profit maximizing price. c. Calculate the upper and lower limits within which marginal cost may vary without affecting the profit maximizing output

Find price and quantity that would maximize social welfare : A. Find the price and quantity that maximizes the company's profit B. Find the price and quantity that would maximize social welfare C. Find out Dead weight loss

What will be rate of return eventually earned by all firms : 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 the magnitude of the vector product : Vector A ? has magnitude 10.0m m and vector B ? has magnitude 18.0m m . The scalar product A ? ?B ? is 90.0m 2. What is the magnitude of the vector product

Calculate the resistance of the mercury : In one form of plethysmograph (a device for measuring volume), a rubber capillary tube with an inside diameter of 1.22 mm is filled with mercury at 20°C, Calculate the resistance of the mercury

What is a time series : Explain the terms: simple random sampling , systematic sampling, stratified sampling, cluster sampling and what is a time series? Explain the 4 main components of a time series.

Find the amplitude of the e and b fields : the solar constant is the radiant flux density from the sun at the earth's surface and is about 0.135 W/cm^2 when the sun is directly overhead, find the amplitude of the E and B fields

User Account

All Pages