Exit from a market will stop when A) accounting losses are zero. B) the cost of capital is equal ...

Author Question: Exit from a market will stop when A) accounting losses are zero. B) the cost of capital is equal ... (Read 97 times)

NClaborn

Hero Member
Posts: 560

on: Jun 30, 2018

Exit from a market will stop when
A) accounting losses are zero.
B) the cost of capital is equal to the risk-free rate of return.
C) economic losses are zero.
D) none of these choices.

Question 2

Entry into a competitive market will continue until
A) economic profits are zero.
B) normal profits are zero.
C) when accounting losses are zero.
D) a. and b. are true

aprice35067

Sr. Member
Posts: 337

Reply #1 on: Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

A

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