Author Question: A manufacturing company designs and produces an incredibly efficient solar heating system for large ... (Read 107 times)

newyorker26 · **on:** Apr 19, 2019

Question 1

You borrow $20,000 at an interest rate of 6% to open Candy Dan's, a gourmet sweet shop. If the return on your investment is ________, then you will earn an economic loss.

◦ less than 6%
◦ exactly 6%
◦ greater than 6%
◦ It is indeterminate from the given information.

Question 2

A manufacturing company designs and produces an incredibly efficient solar heating system for large buildings and earns very large profits on it. Which of the following is
true?

◦ The profits this firm earns are a return for an innovation.
◦ The profits this firm earns aren't deserved, as the firm did not take any risks.
◦ This firm must not be in a competitive market if it was able to earn a profit.
◦ both The profits this firm earns are a return for an innovation and This firm must not be in a competitive market if it was able to earn a profit

InfiniteSteez · **Reply #1 on:** Apr 19, 2019

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