1) The world’s 10 largest firmsWhat are their sources of economies of scale?

 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.

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