An Electronics Firm Hires a Group of Youths to Go

question 3

Multiple Choice

An electronics firm hires a group of youths to go into websites and plant comments that are made to look as if they came from actual customers. This practice is known as:

• A) ethical malpractice.
• B) market manipulation.
• C) creating a stealth campaign.
• D) caveat emptor.

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Definitions:

Marginal Cost

The cost increase associated with the production of an extra unit of a product or service.

Competitive Firms

Businesses that operate in a market environment where they vie with others to offer goods or services, focusing on price, quality, and innovation.

Monopolists

Individuals or entities that hold a monopoly, controlling the entire supply of a good or service in a particular market, eliminating competition.

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to market conditions.