Suppose There Is Only One Firm in a Region

question 47

Multiple Choice

Suppose there is only one firm in a region.That single firm is a natural monopoly,offers a risky work environment,no safety precautions,and low wages.That firm will

• A)never install any safety devices.
• B)install safety devices in exchange for reduced wages if the cost of providing the safety devices is less than or equal to the wage reduction agreed to by the workers.
• C)only install safety devices if ordered to do so by a regulatory agency.
• D)only install safety devices if a competing firm moves to the region.

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Definitions:

Push Strategy

A marketing approach where a company "pushes" its products to consumers through advertising and promotion strategies.

Speculation Strategy

An approach to investment that involves taking on higher risk in anticipation of significant returns, often based on predictions about market trends.

Hybrid Strategy

A business approach that combines elements of different strategies, such as cost leadership and differentiation, to achieve competitive advantage.

Upstream Flows

In supply chain management, refers to the activities involved in the initial stages of production, including the acquisition of raw materials.