Before the Breakup of AT&T Several Years Ago, Profits on Long-Distance

question 37

Multiple Choice

Before the breakup of AT&T several years ago, profits on long-distance calls offset losses on basic residential service.This practice is known as

• A)abuse of monopolistic power.
• B)cream skimming.
• C)cross-subsidization.
• D)the Ramsey rule.

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Definitions:

Attribution Bias

A cognitive bias that refers to the systematic errors made when people evaluate or try to find reasons for their own and others' behaviors.

Perceptual Biases

Cognitive biases that affect the interpretation and judgment of sensory information, leading to skewed perceptions and potentially erroneous conclusions.

Social Biases

The systematic tendency to process social information in a way that favors particular outcomes or interpretations based on personal, cultural, or societal preferences.

Interpretive Efficiency

The ability to quickly and accurately understand or make sense of information and situations.