Which of the Following Situations Reflects a Possible Conflict of Interest

question 7

Multiple Choice

Which of the following situations reflects a possible conflict of interest?

• A) You offer a company contract to a friend without checking competing bids.
• B) You hire a relative for a company position although another candidate is more qualified.
• C) You buy a piece of realty that would be suitable for a planned company project.
• D) All of the above.

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Definitions:

Inverse Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded, where the price is on the vertical axis and quantity on the horizontal axis.

Marginal Costs

The extra expense associated with manufacturing an additional unit of a product or service.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on their willingness to pay.

Demand

The willingness and ability of consumers to purchase goods or services at different prices.