Question

There are 300 purely competitive farms in the local dairy market. of the 300 dairy farms, 298 have a cost structure that generates profits of $18 for every $300 invested. instructions: enter your answers as whole numbers.


a. what is the percentage rate of return for these 298 dairies?

Answer 1

Answer:

The percentage rate of return for these 298 dairies is 6%

Explanation:

The percentage rate of return is calculated by dividing the profits by total investment, so the given information in the question is,

profits = $18

investment = $300

percentage rate of return = 18/300 = 0.06 = 6%