Which of the Following Conditions Makes It More Likely That

question 8

Multiple Choice

Which of the following conditions makes it more likely that a consumer will engage in the opportunistic behaviour of claiming compensation unreasonably?

• A)Consumers perceive that the company tends to treat people unfairly.
• B)Consumers perceive the company's employees to be friendly.
• C)The company is small.
• D)The consumer has made a one-time transaction with the company.
• E)The company has a reputation for paying employees fairly.

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Definitions:

Marginal Revenue

The additional income obtained from selling one more unit of a product or service.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is unachievable.

Socially Efficient

A situation where resources are allocated in a way that maximizes the total benefit to society.

Monopoly

A market structure characterized by a single seller dominating the market, often leading to higher prices and lower output than in competitive markets.