A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. The firm is earning $5.50 on every $50 invested by its founders. What is the percentage rate of return? Is the firm earning economic profit? If so, how large? Will this industry see entry or exit? What will be the rate of return earned by firms in this industry once the How to Find Rate of Return. If you are looking at different potential investments, such as stocks or mutual funds, one way to measure how well they performed in the past is their rate of return. The rate of return measures the increase or decrease in the value of the investment as a percentage of the original amount Formula to Calculate Rate of Return. The rate of return is the return that an investor expects from his investment. A person invests his money into a venture with some basic expectations of returns. The rate of return formula is basically calculated as a percentage with a numerator of average returns (or profits) on an instrument and What is economic profit? Economic profit is the method of calculating profit including both explicit and implicit costs. Where accounting profit is used primarily for tax purposes, economic profit is used to determine the current value.. Formula. Economic Profit (from total) = Revenue – Costs A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. The firm is earning $5.50 on every $50 invested by its founders. What is the percentage rate of return? Is the firm earning economic profit? If so, how large? Will this industry see entry or exit? What will be the rate of return earned by firms in this industry once the Rate of Return Formula – Example #2. Amey had purchased home in year 2000 at price of $100,000 in outer area of city after sometimes area got develop, various offices, malls opened in that area which leads to an increase in market price of Amey’s home in the year 2018 due to his job transfer he has to sell his home at a price of $175,000. Companies can use the marginal rate of return to determine the number of units they can produce to maximize profits. This happens when the marginal cost equals marginal revenue, or when the marginal rate of return equals 1. This point is known as the profit maximization point. For instance, Generic Games sells 200,000 copies of its football game.

## What is economic profit? Economic profit is the method of calculating profit including both explicit and implicit costs. Where accounting profit is used primarily for tax purposes, economic profit is used to determine the current value.. Formula. Economic Profit (from total) = Revenue – Costs

8 Nov 2019 Rate of return can be used to determine the success of a project, the initial cost of the investment, given as a percentage of the initial cost. 6 Jun 2019 A rate of return is measure of profit as a percentage of investment. Using this information and the formula above, we can calculate that the The rate of return is compared with gain or loss over investment. The rate of return expressed in form of percentage and also known as ROR. The rate of return 24 May 2019 Also known as return on investment, rate of return is how much an investment has lost or gained over a specific period of time. A positive number Free return on investment (ROI) calculator that returns total ROI rate as well as Conversely, the formula can be used to compute either gain from or cost of

### The Rate of Return (ROR) is the gain or loss of an investment over a period of time copmared to the initial cost of the investment expressed as a percentage.

The rate of return communicates how efficiently an investment is performing. It is expressed as a percentage of how much the investment’s value has changed compared to its original cost. The higher the ROR, the better the investment. Investors and analysts also use the ROR to compare the attractiveness of different investments. Current value: the current value of the item. Original value: the price at which you purchased the item. Then, apply these values to the rate of return formula: ((Current value - original value) / original value) x 100 = rate of return Remember, the outcome is always reflected as a percentage, In its simplest form, John Doe's rate of return in one year is simply the profits as a percentage of the investment, or $3,000/$500 = 600%. There is one fundamental relationship you should be aware of when thinking about rates of return : the riskier the venture, the higher the expected rate of return. Processing., , The rate of return calculations for stocks and bonds are slightly different. Assume an investor buys a stock for $60 a share, owns the stock for five years, and earns a total amount of $10 in dividends. If the investor sells the stock for $80, his per share gain is $80 - $60 = $20. A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 5 percent. The firm is earning $5.50 on every $50 invested by its founders. What is the percentage rate of return? Is the firm earning economic profit? If so, how large? Will this industry see entry or exit? What will be the rate of return earned by firms in this industry once the