How the semi-salt is earning monopoly profits

Reference no: EM13189481

Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. While virtually anyone with a degree in college chemistry could replicate the firm's formula, due to the relatively high cost, Semi-Salt has decided not to apply for a patent. Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5 percent on investment since it began producing polyglutamate- a rate comparable to the average rate of interest that large banks paid on deposits over this period. Do you think Semi-Salt is earning monopoly profits? Why?

Reference no: EM13189481

Questions Cloud

Theories regarding how pyramids at giza were constructed : There have been many theories regarding how the pyramids at Giza were constructed. Most experts agree that they were constructed as burial monuments for pharaohs, but "how" these ancient people constructed monuments of such great size without modern ..

Derive an expression for the marginal product of labor : Consider a Cobb-Douglas production function with three inputs, K is the capital(number of machines), L is labor (nuber of workers) and H is human capital (the number of college degrees among workers) The production fucntion isY=K1/3 L1/3 H1/3

The limitation on alice''s authority : Pete Principal tells Alice, his sales agent, that under no circumstances does she have authority to make any warranties covering goods she sells for Pete. No third party ever learns about Pete's limitation on Alice's authority.

Based on the following production and sales estimates : Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May.

How the semi-salt is earning monopoly profits : Despite the absence of patent protection, Semi-Salt has averaged accounting profits of 5.5 percent on investment since it began producing polyglutamate- a rate comparable to the average rate of interest that large banks paid on deposits over this ..

Accounting and consulting partnership : Hannah is a managing partner of Andrusian Worldwide LLP, an accounting and consulting partnership. Acting within her implied authority, Hannah makes a contract for Andrusian to perform an audit for National Motors Company.

What must opec do to maintain the price of oil : The opening statement on the Web site of the Organization of Petroleum Exporting Countries says, "OPEC's eleven members are all developing countries whose economies are heavily reliant on oil export revenues. THey therefore seek stable oil prices ..

Painting in the early renaissance : Did Cimabue's Madonna Enthroned have Byzanine elements in it and it is therefore of lessor quality than any painting in the early Renaissance?

Discussion of how the epic ramayana : Begin your response with a brief definition of dharma and follow with a discussion of how the epic Ramayana illustrates this crucial ideal. Include specific examples of how Sita, Rama and other characters fulfill (or do not fulfill) their dharma

User Account

All Pages