James, the Divisional Manager at Leo Motors, Has to Consult

question 61

Multiple Choice

James, the divisional manager at Leo Motors, has to consult with Mark when it comes to the hiring procedures of the company because Mark is a senior human resources manager. Which of the following would best describe the privileges that Mark enjoys?

• A) Reward power
• B) Referent power
• C) Legitimate power
• D) Coercive power

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Definitions:

Regional Monopoly

A regional monopoly exists when a single firm dominates the market for a particular good or service in a geographic area.

Herfindahl-Hirschman Index

A measure of market concentration that squares and then sums the market shares of all firms within an industry, indicating the level of competition.

Game Theory

A theoretical framework for conceiving social situations among competing players and for predicting their choices of strategic actions.

Open Collusion

A situation where firms openly agree on prices, production levels, or market shares, violating competition laws.