If a Firm Has a Monopoly in Both the Production

question 3

Multiple Choice

If a firm has a monopoly in both the production and distribution of a product and the managers of both the production and distribution divisions maximize profits, all of the following are true except which one?

• A)The firm will maximize its total profit.
• B)The manager of one of the divisions should be instructed to maximize profit and the manager of the other division should be instructed to operate as a perfectly competitive firm.
• C)A successive monopoly will occur within the firm.
• D)Double marginalization will occur within the firm.

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Definitions:

Stanzas

Groups of lines forming the basic recurring metrical unit in a poem.

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A hybrid dog breed resulting from the crossbreeding of a Dachshund and a Corgi, known for their distinctive short legs and long body.

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A breed of dog that is a cross between a Schnauzer and a Poodle, known for its friendly disposition and hypoallergenic coat.

Labradoodle

A hybrid breed of dog created by crossing a Labrador Retriever and a Poodle, known for its friendly nature and hypoallergenic coat.