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Impact of patents on monopoly profits - Semi-Salt Industries.

Semi-Salt Industries began its operation in 1975 and remains the only firm in the world that produces and sells commercial-grade polyglutamate. While virtually anyone with a degree in college chemistry could replicate the firm'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 averaged accounting profits of 5.5 percent on investment since it began producing polyglutamate - a rate comparable to the average rate of interest which large banks paid on deposits over this period. Do you think Semi-Salt is earning monopoly profits? Why?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M922901

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