Every Month the Pest Exterminator Does a Monthly Spraying at Mike

question 43

Multiple Choice

Every month the pest exterminator does a monthly spraying at Mike Wade's house. Every month Wade gripes that he is being ripped off by the exterminating company and how he's going to find a new one. But he never does change service providers due to:

• A) The iteration principle
• B) Customer inertia
• C) Service standardization
• D) Switching costs
• E) Process reciprocity

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product that is homogeneous.

Industrial Union

A labor union that organizes workers across various industries, rather than according to skill or trade.

Monopsonistic Employer

An employer who has significant market power in hiring or purchasing, allowing them to dictate terms to their suppliers, often leading to lower prices or wages.

Bilateral Monopoly

A market in which there is a single seller (monopoly) and a single buyer (monopsony).