Suppose that two industries, the pizza industry and the calzone industry, are equally risky, but rates of

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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.

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Modern Principles Of Microeconomics

ISBN: 9781429278416

3rd Edition

Authors: Tyler Cowen, , Alex Tabarrok

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