Kim Mathews, a Retired School Teacher, Recently Relocated to Her

question 78

Multiple Choice

Kim Mathews, a retired school teacher, recently relocated to her old neighborhood. To her dismay, she learned that the trash collection company in the area charged almost double the price compared to the companies in other areas. She complained to the company manager but was rudely told that she had to either pay the fee or dispose the trash on her own. Kim had no other option but to pay the fee. The most likely reason the company had such poor customer service is that it:

• A) was dependent on consumers' repeat business.
• B) did not have competitors providing the same service.
• C) did not want to serve retired individuals.
• D) served only high-income households.

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Definitions:

Behavioral Economists

Specialists who study economic decisions by integrating insights from psychology, judgment, and economics to understand how individuals and institutions make choices.

Alarm Clock

A device used to awaken individuals from sleep at a set time with an alarm.

Myopia

A condition where individuals or organizations focus on short-term gains at the expense of long-term benefits, often leading to suboptimal decisions.

Time Inconsistency

The phenomenon where a person's preferences change over time, such that what is preferred in the future is inconsistent with what is preferred now, often leading to planning and decision-making challenges.