Asked by
Shaienne Sessoms
on Nov 04, 2024Verified
The rate of return on capital that is just sufficient to keep owners and investors satisfied is called
A) economic profit.
B) a minimum efficient scale.
C) the price-earnings ratio.
D) a normal rate of return.
Normal Rate
Typically refers to a baseline or standard rate of interest, production, or growth that is considered usual or expected under normal circumstances.
Minimum Efficient Scale
The smallest level of production at which a firm can achieve the lowest long-run average total cost.
- Appreciate the role and formula for the normal rate of return within the area of corporate economics.
Verified Answer
RF
Learning Objectives
- Appreciate the role and formula for the normal rate of return within the area of corporate economics.