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Sometimes, small stores continue to operate - even though they do not earn economic profits . Are such decisions logical?Elucidate. A firm is considering an

  1. Sometimes, small stores continue to operate - even though they donotearneconomic profits. Are such decisions logical?Elucidate.
  2. A firm is considering an investment that will earn a 6% rate of return. If it were to borrow the money, it would have to pay 8% interest on the loan, but it currently has the cash, so it will not need to borrow.Should the firm make the investment? Show your work.

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