Managers of a Firm That Is a Monopoly Hold a One-Week

question 284

Multiple Choice

Managers of a firm that is a monopoly hold a one-week executive retreat in Hawaii; however, it would have been cheaper to hold it in Des Moines, Iowa. This is an example of

• A) rent-seeking behavior.
• B) x-inefficiency.
• C) price discrimination.
• D) anticompetitive behavior.

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Definitions:

Discrimination

The practice of according individuals or groups inferior treatment in hiring, occupational access, education and training, promotion, wage rates, or working conditions even though they have the same abilities, education, skills, and work experience as other workers.

Labor Force

The total number of people employed or actively seeking employment in an economy or specific labor market.

Competitive Economy

An economic system where businesses operate in a free market, with minimal barriers to entry and where prices are determined by supply and demand.

Demand Curves

Graphs that show the relationship between the price of a good and the quantity demanded by consumers at those prices.