A firm in a perfectly competitive industry has a typical cost structure. The normal rate of profit in the economy is 6 percent. This firm is earning $5.50 on every $50 invested by its founders.

Instructions: Enter your answers as whole numbers.

a. What is its percentage rate of return? percent.

b. Is the firm earning an economic profit? (Click to select) No Yes .

If so, how large? percent.

c. Will this industry see entry or exit? (Click to select) Entry Exit .

d. What will be the rate of return earned by firms in this industry once the industry reaches long-run equilibrium? percent.