2.17 A firms profit is = revenue - labor costs - capital costs. Its capital cost...

2.17 A firm’s profit is π = revenue - labor costs -

capital costs. Its capital cost can be stated as its internal rate of return on capital, irr, times the value of its capital, pKK, where pK is the price of a unit of capital and K is the number of units of capital. What is the firm’s implicit rate of return on its capital? (Hint: Set profit equal to zero and solve for the irr.) A