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

Show Answers

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.

How does the typical profit rate for firms with mini… — Profit Maximizing Under Perfect Competition And Monopoly | PakQuizHub