+1-415-670-9189
info@expertsmind.com
Explain why the presence or lack of profits might exist
Course:- Microeconomics
Reference No.:- EM13700166




Assignment Help
Assignment Help >> Microeconomics

Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. Virtually anyone with a degree in college chemistry could easily replicate the firm's formula, which is not patent protected. Nonetheless, since 1985 Zelda has averaged accounting profits of 6 percent on investment. This rate is comparable to the average interest rate that large banks paid on deposits over the period.

a) Do you think Zelda is earning monopoly profits? Why?

b) Explain why the presence or lack of profits might exist.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Assume that keynesian model applies to the economy in the short-run. After the stock market fell sharply in 2008, the aggregate denabd decreased greatly around the world. us
Suppose a company funds a party for 100 employees that costs $4,000. How do we know that the party is incentivizing employee productivity more than simply giving each employ
The workers on the first floor neither smoke nor drink and they used whiskey and cigars to re-gift to their friends and family. Since they don%u2019t consume neither of the
Evaluate the Clean Air Act and determine if it has been effective from an economic standpoint. Explain your reasoning. Based on your evaluation of the Clean Air Act and addi
On October 9th the US House of Representatives voted by 261-59 to end a 40 year ban on exporting crude oil. Students are asked to prepare a 3 -5 page case study detailing the
It is shown that the population of New York City, NY is much greater than that of Irvington, NJ. Employment opportunities, malls, social activities and tourist sites in New Yo
What is the inverse demand function facing OPEC (which takes into account the fringe's "response") as a function of the parameters of the model (note that the method for doi
Discuss the historic role of technological change over the past 30 years and how this change has contributed to the growth of Apple and other businesses like it. Base your r