A Business-Stealing Externality Is

question 295

Multiple Choice

A business-stealing externality is

• A)an externality that is likely to be punished under antitrust laws.
• B)the negative externality that occurs when one firm attempts to duplicate exactly the product of a different firm.
• C)an externality that is considered to be an explicit cost of business in monopolistically competitive markets.
• D)the negative externality associated with entry of new firms in a monopolistically competitive market.

---

Definitions:

Membership and Seniority-based Pay

A compensation strategy where an employee's earnings are determined by their length of service and membership in an organization, rather than performance or skills.

Skill-based Pay Plans

Compensation strategies that reward employees based on the range, depth, or level of skills and competencies they demonstrate, rather than their job title or position.

Psychological Distance

The perception of an object, idea, or situation as being removed from the immediate sensory experience, affecting cognition and decision-making.

Employability

The set of skills, knowledge, understanding, and personal attributes that make an individual more likely to choose and secure occupations in which they can be satisfied and successful.