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Author Question: Suppose that the normal rate of return in the inkjet printer industry is 10% and the return being ... (Read 180 times)

laurencescou

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Question 1

Suppose that an international incident occurs that creates uncertainty in the market. It is likely that this incident will ________ the level of private investment spending.


◦ decrease
◦ increase
◦ neutralize
◦ not affect

Question 2

Suppose that the normal rate of return in the inkjet printer industry is 10% and the return being earned by firms in this industry equals exactly 5%. Which of the following is likely to follow from this scenario?


◦ Firms will collude to keep competition out.
◦ New firms will want to enter the industry.
◦ Firms will want to leave the industry.
◦ The normal rate of return will fall to 5% in the long run.


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Marked as best answer by laurencescou on Apr 19, 2019

hollysheppard095

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