Assume a Firm Is a Monopoly and Enjoys $10,000,000 Profits

question 109

Multiple Choice

Assume a firm is a monopoly and enjoys $10,000,000 profits per year.The firm lobbies to have a moratorium passed by Congress on new firms in its market for the next 25 years.If there is no discount rate,how much would the firm be willing to pay to deter entry?

• A) $250 million
• B) $25 million
• C) $100 million
• D) $250 billion

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Definitions:

Expatriate Employees

Workers who live and work outside their native country, often for an international company or organization.

Negative Consequences

Undesirable outcomes that result from an action or inaction in a given scenario.

Conference Board of Canada

A Canadian not-for-profit research organization that specializes in analyzing and disseminating economic trends, organizational performance, and public policy issues.

Workforce Planning

The process an organization uses to analyze its workforce and determine the steps required to prepare for future staffing needs.