Why think semi-salt is earning monopoly profits

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Reference no: EM1344305

Q. Semi-Salt Industries began its operation in 1975 also remains the only industry in the world which produces also sells commercial-grade poly glutamate. While virtually anyone with a degree in college chemistry could replicate the industry's formula, due to the relatively high cost, Semi-Salt has decided not to apply for a patent. Despite the absence of a patent protection, Semi-Salt has standard accounting profits of 5.5 percent (%) on investment since it began producing poly glutamate - a rate comparable to the standard rate of interest which large banks paid on deposits over this period. Do you think Semi-Salt is earning monopoly profits? Why

Reference no: EM1344305

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