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    Profitability Effects of Large Firm Size

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    Does large firm size, pure and simple, give rise to monopoly profits? This question has been a source of great interest in both business and government and the basis for lively debate over the years...See attachment for more information.

    A. From the variables given: Build a model to test, i.e., choose the dependent variable and the independent variable or variables. You must justify your choice of independent variable and independent variables or variables (this means justifying excluding variables as well). You must also justify your choice of a linear or non-linear model.

    B. Carefully and completely explain your results.

    C. Test- conduct all the hypothesis tests in the class notes on your model.

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    Solution Summary

    This solution builds a model in an Excel sheet to test the effects of large firm size with an independent and dependent variable. All workings are shown and hypothesis tests are conducted on the model.