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.
Correct Answer:
Verified
Correct Answer:
Verified
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