4. The average capital invested in Firm X during the year is $20,000. During that same year,...
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4. The average capital invested in Firm X during the year is $20,000. During that same year, Firm X produces after-tax income of $3,200. If the firm’s cost of capital is 12%, what is the economic profit?
a. $0
b. $800
c. $1,200
d. $3,200
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Related Book For
Managerial Economics A Problem Solving Approach
ISBN: 9780324359817
1st Edition
Authors: Luke M. Froeb, Brian T. McCann
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