The Reason That the Local Telephone Company Is Able to Engage

question 62

Multiple Choice

The reason that the local telephone company is able to engage in price discrimination between business and residential customers in providing local phone service is that

• A) it is the only provider of local (landline) telephone service.
• B) it must be extremely difficult, if not impossible, for one consumer to resell phone service to another.
• C) business and residential customers differ in their willingness to pay for phone service.
• D) All of the above are correct.

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Definitions:

Compliance

The act of conforming to a rule, standard, or law.

Shared Values

Fundamental beliefs or ideals that are held in common by members of a group or society.

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Volunteering

The act of offering one's time and services to a cause or organization without the expectation of financial compensation.