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:

Mythic "Wild" West

A romanticized and exaggerated portrayal of the American West during the late 19th century, emphasizing adventure, lawlessness, and individualism.

Second Industrial Revolution

A phase of rapid industrialization in the late 19th and early 20th centuries, marked by advancements in steel production, electricity, and transportation.

Second Industrial Revolution

A period of rapid industrial growth and technological innovation during the late 19th and early 20th centuries, characterized by the expansion of steel, electric, and chemical industries.

American West

A region of the United States known for its frontier history, expansion, and the "Wild West" era, characterized by extensive exploration and settlement in the 19th century.