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 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 that large banks paid on deposits over this period.
1. do you think semi-salt is earning monopoly profits? why?

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005