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A firm has capital of Rs 6,00,000 and the normal rate of return is 12%. Normal profit is
ARs 7,200
BRs 72,000
CRs 50,000
DRs 6,12,000
Answer & Solution
Correct answer: B. Rs 72,000
Normal profit is capital times normal rate: 6,00,000 x 12/100 = 72,000.
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