Penn Wars Has Decided to Downsize

question 13

Multiple Choice

Penn Wars has decided to downsize.Instead of having the managers tell the employees themselves,they have hired an outside firm.This is an example of

• A)bias suppression.
• B)correctability.
• C)representativeness.
• D)ethicality.
• E)consistency.

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Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often to maximize their own profits at the expense of consumers.

Oligopolists

Firms or entities that are part of a market structure where a small number of companies or sellers dominate the supply of a particular product or service.

Prices

The amount of money or goods asked or given in exchange for goods or services.

Herfindahl-Hirschman Index

A measure used to determine the level of competition within an industry, calculated by summing the squares of the market shares of all firms in the industry.