We learned in previous lesson plans that resources are used efficiently when marginal benefit equals marginal cost. Economists know that a monopoly--a market in which one firm sells a good or service that has no close substitutes and in which a barrier blocks the entry of new firms--does not use resources efficiently. For example, the tech firm Microsoft’s prices are too high in the sense that they exceed marginal cost and result in fewer copies sold of the Windows operating system and Office applications than the efficient quantities. Explain what makes a monopoly inefficient. Explain whether a monopoly is fair based on the two views, i. e., fair rules and a fair result. Your evaluation should be based on your experience dealing with monopoly market products such as Microsoft Office, your everyday life, and your research conducted on this topic.

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer