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You Borrow $40,000 at an Interest Rate of 5% to Open

Question 102

Multiple Choice

You borrow $40,000 at an interest rate of 5% to open Organic Foods, an all-natural food store. You will earn an economic profit if the return on your investment is


A) greater than 5%.
B) 5%.
C) between 0 and 5%.
D) 10% or greater.

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