What will be rate of return eventually earned by all firms

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

Reference no: EM13242141

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