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) Double marginalization will occur within the firm.
B) The firm will maximize its total profit.
C) The firm will not earn the maximum total profit.
D) A successive monopoly will occur within the firm.
B) The firm will maximize its total profit.
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The value of a worker's marginal product:
A) is the increment in total cost of a firm when the worker is hired. B) is the additional revenue that the worker brings in to the firm. C) is the maximum price at which a product can be sold in a market. D) equals the average product of a firm divided by the marginal product of the worker.
In the figure above, assuming that the firm does not shut down, the firm will produce
A) fewer than 19 units. B) 20 units. C) 30 units. D) 40 units.
The Soviet socialist economy fell apart primarily because:
A. it was based on barter rather than monetary exchange. B. markets failed to develop. C. workers lacked incentives to work and production was inefficient. D. individuals are not motivated by self-interest.
Low interest rates will persuade corporations to invest more right now.
Answer the following statement true (T) or false (F)