XcruiseCom Is an Internet Company That Sells Discount Cruises Over

question 120

Multiple Choice

Xcruise.com is an Internet company that sells discount cruises over the Internet to customers throughout the United States. Xcruise.com has one office with just 10 employees and minimal equipment, located in Fargo, North Dakota. The rest of Xcruise.com's employees, equipment and boats are located in either Miami or Libya. The Bottonskis, residents of Virginia, bought two first-class tickets on Xcruise.com's Alaska cruise. Mrs. Bottonski was injured when she fell on a wet floor near the dinner buffet. What court is likely to have jurisdiction if Mrs. Bottonski brings suit to recover her $123,000 in medical bills?

• A)Alaska federal district court
• B)No court in the U.S.; Libya has jurisdiction
• C)State court only in North Dakota
• D)Federal district court in North Dakota or Florida

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Definitions:

Market Power

The ability of a firm to influence or control the price and output levels in a market.

Perfect Competition

A market structure characterized by a large number of small firms, a homogenous product, free entry and exit, and perfect information, leading to prices equaling marginal costs.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for product differentiation.

Product Differentiation

The practice of setting a product or service apart from those in the marketplace to increase its attractiveness to a designated target market.