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    Exam 19: Measuring Economic Profit
  5. Question
    If the Return on Capital Is Less Than the Cost
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If the Return on Capital Is Less Than the Cost

Question 37

Question 37

Multiple Choice

If the return on capital is less than the cost of capital


A) economic profits are zero.
B) accounting profits are zero.
C) then accounting profits minus economic profit are zero.
D) economic profits are negative.

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