The Collapse of Enron Occurred Because of

question 52

Multiple Choice

The collapse of Enron occurred because of

• A) a glut of electricity.
• B) the fall in grain prices.
• C) a major pipeline disaster on its network.
• D) improper accounting and business practices.

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Definitions:

Product Differentiation

The practice of differentiating a product or service to appeal more to a specific target market.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, effectively maximizing overall social welfare.

Productive Efficiency

A situation where an economy or entity cannot produce more of one good without reducing the output of another good, indicating optimal resource allocation.

Monopoly Power

Monopoly power refers to the ability of a firm to control market prices and production, typically due to lack of competition in the marketplace.