Suppose That the Normal Rate of Return in the Inkjet

Multiple Choice

Suppose that the normal rate of return in the inkjet printer industry is 10% and the return being earned by firms in this industry equals exactly 5%. Which of the following is likely to follow from this scenario?

A) Firms will collude to keep competition out.
B) New firms will want to enter the industry.
C) Firms will want to leave the industry.
D) The normal rate of return will fall to 5% in the long run.