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Suppose There Is Only One Firm in a Region

Question 95

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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