Zelda Industries Is the Only Firm of Its Kind in the World.Due

question 18

Essay

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.Do you think Zelda is earning monopoly profits?
Why?

---

Definitions:

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions necessary for survival.

Photosynthesis

The procedure in which sunlight is harnessed by green plants and a few other organisms to generate nutrients from water and carbon dioxide.

Homeostasis

Homeostasis is the self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.

Environmental Change

Refers to any significant alteration in the measures and patterns of climate, land, water, air, and ecosystems over time, whether due to natural processes or human activities.