You Borrow $10,000 at an Interest Rate of 5% to Open

question 23

Multiple Choice

You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will earn an economic profit if

• A) the return on your investment is between 0 and 5%.
• B) the return on your investment is 5%.
• C) the return on your investment is greater than 5%.
• D) the return on your investment is 10% or greater.

---

Definitions:

Similarity-Based Approach

A method or strategy used in various fields, including psychology and computer science, that emphasizes analyzing and organizing items based on their similarities.

Knowledge-Based

Relating to systems or approaches that utilize a large repository of knowledge to solve problems or make decisions.

Prototype

A typical example of a category that embodies the most common and salient features of that category.