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

question 24

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 any firm(s) arguing against the moratorium be willing to spend to block it?

• A) something less than $250 million
• B) $250 million
• C) $251 million
• D) $250 billion

---

Definitions:

Added Value Negotiating

A negotiation technique stressing the creation of additional value in agreements, benefiting all parties involved.

BATNAs

Best Alternative to a Negotiated Agreement, the option that a negotiator would take if the current negotiations fail and an agreement cannot be reached.

Resistance To Change

The reluctance or refusal to adapt to new methods, practices, or conditions in the workplace or other environments.

Employee Resistance

Opposition or pushback by employees against changes or policies introduced in the workplace.