Marie's Car Dealership Is the Only Dealership in Victorville,California

question 149

Multiple Choice

Marie's Car Dealership is the only dealership in Victorville,California.The owner,Marie,experiences large economies of scale.Because she is the only seller of cars in the town,

• A) Marie has market power.
• B) Marie has no market power and must price at marginal cost.
• C) Marie can charge any price she wants and will still sell the number of cars that maximize her profits.
• D) consumer surplus is maximized in the car market.
• E) total economic surplus is maximized in the car market.

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Definitions:

Ethnocentrism

The act of judging another culture based on the values and standards of one's own culture, often leading to bias and misunderstanding.

Corporate Governance

The system of rules, practices, and processes by which a corporation is directed and controlled, encompassing nearly every aspect of management, from action plans and internal controls to performance measurement and corporate disclosure.

Whistle-Blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization that is either private or public.

Shareholder Voting

The process by which shareholders exercise their right to vote on corporate matters, such as elections for the board of directors or decisions on corporate policies.