Read the Paragraph Below and Answer the Questions That Follow

question 27

Multiple Choice

Read the paragraph below and answer the questions that follow.
(1) The city of Bangalore, India, is a jarring mixture of new and old. (2) Bangalore has become a world center of the computer software industry, and companies like IBM, Dell, and Hewlett Packard have built dozens of gleaming new buildings. (3) In contrast, the rutted dirt roads are choked with oxcarts, and three-wheeled taxis belch black fumes. (4) Over breakfast each morning at the Taj Residency Hotel, Indian programmers chat with American engineers about the latest piece of computer code. (5) Yet sandal-clad women carry baskets of tools on their heads at a nearby construction site, and workers drag a huge pipe into place using only ropes. (6) Each night, teams of programmers send their work by satellite uplink to teams on the other side of the earth. (7) However, they must rely on diesel generators because power outages lasting two or three hours occur almost every day.
What two things are being compared and/or contrasted?

• A) Bangalore and India
• B) Bangalore's old and new aspects
• C) Indian and American engineers

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Definitions:

Tacit Collusion

An unspoken, non-explicit agreement among competitors to avoid competitive practices like price wars, often difficult to detect and regulate.

Price Extortion

Price extortion occurs when a seller significantly increases the price of goods or services to a level much higher than is considered reasonable or fair, often in situations where consumers have limited choices or during emergencies.

Dominant Strategy

In game theory, a strategy that is best for a player in a game regardless of the strategies chosen by the other players.

Pricing Strategy

A plan or method implemented by a company to price its products or services to attract consumers while maximizing profit.