Harriette Owned a Diner in the 1950s

question 138

Multiple Choice

Harriette owned a diner in the 1950s. At that time, the town in which Harriette's diner was located had a law declaring that it was illegal for restaurants to serve white people and black people in the same dining room. But Harriette never made customers of different races eat in separate rooms. What does this situation demonstrate about Harriette's business practice?

• A) It is an example of an ethical lapse.
• B) It is clearly unethical, because obeying the law is the most fundamental ethical requirement of all.
• C) It is ethical, even though it was illegal according to local law.
• D) It is neither ethical nor unethical; it represents a pure business decision that has no ethical dimension.

Understand the graphical representation of monopolist demand, marginal revenue, and the implications for pricing and output decisions.

Identify the economic inefficiencies associated with monopoly power and how it affects consumer surplus.

Understand the economic characteristics and behaviors of monopolists.

Contrast monopolistic markets with competitive markets.

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Definitions:

Martin Seligman

A psychologist known for his work on positive psychology, learned helplessness, and for promoting concepts such as PERMA to characterize well-being.

Downward Comparison

A social comparison strategy where individuals compare themselves to others who are less competent or in a worse situation, which can boost self-esteem.

Self-effacing Bias

The tendency to attribute successes to external factors and failures to internal factors, often observed in some cultures.

Homogeneity Of Attribution

The tendency to assume that individuals within a group share the same attributes, beliefs, or characteristics, often leading to stereotypes.