The Big Box Company is a firm in a perfectly competitive
industry. The average rate of...
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Economics
The Big Box Company is a firm in a perfectly competitive
industry. The average rate of return on capital in this industry is
1515%. Thus, if the Big Box Company earns a 1515% rate of
return, A. it can expect more firms to enter the industry. B. it
earns zero economic profit C. it earns positive economic profit. D.
it would be better off exiting the industry. E. Both A and C.
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