A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 perc

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A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 perc

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A firm in a purely competitive industry has a typical coststructure. The normal rate of profit in the economy is 5 percent.This firm is earning $5.50 on every $50 invested by its founders.What is its percentage rate of return? Is the firm earning aneconomic profit? If so, how large? WIll this industry see entry orexit? What will be the rate or return earned by firms in thisindustry once the industry reaches long-run equilibrium?
A. Upward sloping
B. Downward sloping
C. Horizontal
D, U-shaped
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