With free entry A) economic profits are possible over the long ...

[NClaborn]

With free entry
 A) economic profits are possible over the long run.
  B) economic profits are possible but only over limited amounts of time.
  C) economic profits are not possible.
  D) the cost of capital will not be covered.

Question 2

If the return on capital is less than the cost of capital
 A) economic profits are zero.
  B) accounting profits are zero.
  C) then accounting profits minus economic profit are zero.
  D) economic profits are negative.

[coreycathey]

Answer to Question 1

B

Answer to Question 2

D

[NClaborn]

Thank you

[coreycathey]

No problemo