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




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
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
How it is possible for the price of the superstar's autographs to be higher than the price of the teammate's autographs even though the supply of superstar autographs is lar
Discuss in detail at least three missing internal controls, the reasons why these controls are important, and a remedy to avoid future fraud in the case of Discount Departme
Since the Great Recession of the first decade of the 21st century, the deficit of the Federal government of the United States and a number of nations belonging to the Europe
A company has sales of $300,000 with variable expenses of $210,000, fixed expenses of $110,000, and net loss of $20,000. How much would the company have to sell in order to
Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles.
Construct a 98% confidence interval estimate for the difference between the mean creativity score for those with a red background and the mean creativity score for those wit
What explains the relative stability of the price of gold from 1968 to 1971? What implications do the movements in gold prices since 1971 have for an attempt to reestablish a
What would happen to the short-run equilibrium price and quantity of magnesium if a major (economically large) magnesium mine had to close due to environmental regulation? Ass