What will be the rate of return earned by firms

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a firm in a purely competitive industry has a typical structure. the normal rate of profit in the economy is 5 %. this firm is earning $5.50 on every $50 invested by its founders. what is the percentage rate return ? is the firm earning an economic profit? will this industry see entry or exit? what will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium?

Reference no: EM13208832

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