Question

1, If there is only one supplier in an industry, then the firm is _______________.

a.an Oligopoly

b.part of Pure Competition

c.part of Monopolistic Competition

d.the industry

2. An example of a(n) ______________ is allowing less-efficient workers to be employed and/or paid more than a market rate.

a.profit maximization

b.operating efficiency

c.operating inefficiency

d.loss minimization

Answer 1

1. If there is only one supplier then it is the industry as it is the sole supplier. All other options have no single supplier. Answer d)

2. If less efficient workers are employed and are paid more than the market rate then it is not maximizing profit because it is paying more for a worker that has less value product. And it is not also operating efficiently as it is employing inefficient. So it is operating inefficently. Answer c)