How does the typical profit rate for firms with minimal risk compare to the yield on government bonds considered risk-free?

Multiple choice question for Profit Maximizing Under Perfect Competition And Monopoly. Select an option, then review the explanation below.

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roughly fifty percent of itless than the bond interest rategreater than the bond yieldnearly the same as the bond interest

Explanation

The usual profit rate for firms that face very low risk tends to be close to the interest rate offered by risk-free government bonds, reflecting minimal risk premiums.

Practice related questions from the same subject.

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How does the typical profit rate for firms with minimal risk compare to the yield on government bonds considered risk-free?

Explanation

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