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

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Definitions:

Performance Expectations

Standards or criteria set by an organization or manager to evaluate an employee's job performance.

Individual Contributor

refers to an employee who contributes to their organization through their individual skills and effort rather than by managing others.

Right Abilities

The skills and competences that perfectly match the requirements of a particular job or task.

Highest Performance Levels

The peak or optimum standards of output or efficiency that an individual or group can achieve.