If the Opportunity Cost of Capital Is Below the Rate

question 7

Multiple Choice

If the opportunity cost of capital is below the rate of return to capital in the perfectly competitive beauty salon industry,

• A)resources will flow into the industry.
• B)beauty salon owners must be earning negative economic profit.
• C)the beauty salon industry cannot be in long-run equilibrium.
• D)beauty salon owners must be earning negative marginal revenue at their current levels of output.

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Definitions:

MMPI

The Minnesota Multiphasic Personality Inventory (MMPI) is a comprehensive standardized test used in psychology for assessing personality structure and psychopathology.

Administered in Groups

This refers to a mode of test administration where tests are given to multiple individuals in a group setting simultaneously, often for efficiency and practicality.

16PF

The Sixteen Personality Factor Questionnaire, a self-report assessment tool designed to measure normal-range personality traits based on 16 primary factors.

Raymond Cattell

A British and American psychologist known for his pioneering studies in personality, intelligence theory, and psychometrics.