1. Which of the following statements are true? A. Accounting profits are always greater than economic profits. B. Accounting profits are always greater than normal profits. C. Both A and B are correct D. Neither A nor B are correct. 2. The net present value of all investment projects for a company are positive Which of the following statements is true? A. The firm is earning a normal profit B. The firmn is earning a positive economic profit C. The firm is earning a negative economic profit. D. More information is needed to answer this question. 3. The internal rate of return is greater than the cost of capital for the average investment in an industry. Which of the following statements is true? A. There will be exit from the industry B. There will be no change in industry investment levels. C. There will be entry into the industry, D. More information is needed to answer this question 4. A company has been actively engaging in share repurchases. Which of the following are true? A. The internal rate of return is greater than the cost of capital for that firm's average investment project. B. The firm is earning normal profits C. Both a and b are true D. Neither a nor be are true 5. Generally speaking, consolidation takes place in an industry when which of the following are true? A. Firms are earning below normal profits. B. Technologies favor firms that have an economy of scale. C. Both A and B are true. D. Neither A nor B are true