are their sources of economies of scale? Find the Forbes 2000 list of the world’s largest firms at www.forbes.com/lists. Select three firms from three different industries and discuss the likely sources of the economies of scale that underlie their large size.
enxt 2 years, they took in $40,000 in revenue each year, paid themselves $10,000 annually each, and rented an office for $18,000 per year. Prior to the investment, their $50,000 was in bonds earning an interest rate of 10%. Are they now earning economic profits? Explain your answer.
