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Question: Suppose that two industries, the pizza industry and the calzone industry, are equally risky, but rates of return on capital investments are only 5% in the pizza industry and 8% in the calzone industry. Which way will capital flow-from the pizza industry to the calzone industry, or from the calzone industry to the pizza industry?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92653097

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