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Total Revenues ($) 250,000 Mart Total Costs ($) Wages and salaries to employees 150,000 Risk-free return of 2% on owner's capital of $20,000 400 Interest

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Total Revenues ($) 250,000 Mart Total Costs ($) Wages and salaries to employees 150,000 Risk-free return of 2% on owner's capital of $20,000 400 Interest on bank loan 1.500 Cost of supplies 27,000 Depreciation of capital equipment 8,000 Additional wages the owner could have earned in another 30,000 employment opportunity Risk premium of 4% on owner's capital of $20,000 800 When the industry reaches the long-run, we anticipate that the industry A existing firms will exit B new firms will enter C there will be no change to the number of firms in D more information is needed to answer this

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