What Is the Most Plausible Explanation for Why Lost Items

question 16

Multiple Choice

What is the most plausible explanation for why lost items are recovered much more often in Tokyo than in New York City?

• A) Japanese city dwellers are, on average, more honest than American city dwellers.
• B) Japanese society is collectivistic, which means they are more helpful.
• C) Tokyo has a well-established lost-and-found system, and New York City does not.
• D) Options a, b, and c are equally plausible.

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Definitions:

Oligopoly

A market structure in which a few firms dominate the industry, leading to limited competition and potentially high prices for consumers.

Concentration Ratio

A measure used in economics to assess the degree of concentration of market power in an industry, often expressed as the percentage of market share held by the top firms.

Excess Capacity

A situation where a firm or an economy can produce more goods or provide more services than currently being produced, due to unused resources.

Average-Total-Cost Curve

A graphical representation showing the average total cost per unit of output at different levels of production.