Problem
In the preceding question, prior to being able to outsource, imagine that the supplier is concerned about entry, and must spend $2,000 in lobbying to maintain her position as a monopolist.
(a) Can the firm still make a profit?
(b) What is the maximum amount the firm could afford to spend on lobbying with the objective of maintaining the monopoly position?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.