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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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