a firm in a purely competitive industry has a typical cost structure.
a) fee of return = incomes/Investment
earning =$18
Investement = $2 hundred
charge of return = 18/200 = 9%
b) fee of earnings of financial system = 7%
company fee of income = nine%
employer price of income - charge of profit of economy = nine%-7% = 2% >zero
So, a corporation is an income a monetary profit of two%.
c. As the enterprise is only competitive in nature, it's going to be like big numbers of manufacturers competing with each different to meet the want and desires of a large variety of consumer. in this industry, there can be barriers to entry or exit. In flawlessly competitive markets, there aren't any obstacles to entry or go out. this is a first-rate important characteristic of flawlessly aggressive markets because agencies are capable of freely inputting and exiting in reaction to capacity profit.
So, the sure industry might see a lot of access or exit.
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