Assume the cost of producing 500 units to be ₹ 25,000. Investment of the entrepreneur in his business is ₹ 1,50,000. Rate of normal market return is…

CA Foundation · Business Economics · PYQS · May 2026
Assume the cost of producing 500 units to be ₹ 25,000. Investment of the entrepreneur in his business is ₹ 1,50,000. Rate of normal market return is 10%. The selling price at which the firm will earn supernormal profit is:
(A) A. ₹ 78
(B) B. ₹ 80
(C) C. ₹ 82
(D) D. ₹ 76

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. ₹ 82

Topics: Price Determination in Different Markets

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