Which of the Following Is an Example of the Fallacy

question 75

Multiple Choice

Which of the following is an example of the fallacy of composition?

• A) If one bar offers cheaper drinks,it will increase its revenue;therefore,if all bars offer cheaper drinks,all bars will increase their revenue.
• B) If one shop hires more employees,it will provide better service;therefore,if all shops hire more employees,all shops will provide better service.
• C) If one bookstore stocks more books,it will have a better selection;therefore,if all bookstores stock more books,all bookstores will have a better selection.
• D) If one TV station cuts down on commercials,it can provide more programming;therefore,if all TV stations cut down on commercials,all TV stations can provide more programming.
• E) If one factory buys more equipment,it can produce more;therefore,if all factories buy more equipment,all factories can produce morE.

---

Definitions:

Monopolist

An individual or entity that has exclusive control over the production and sale of a product or service, enabling them to potentially manipulate market prices.

Normal Return

A benchmark profit level that represents sufficient compensation for an entrepreneur or business to cover the opportunity cost of capital and labor, without generating economic profit.

Economic Profit

The difference between total monetary revenue and total costs, including both explicit and implicit costs.

Regulatory Agency

A government body responsible for enforcing laws and regulations to protect public interest in specific sectors, such as healthcare, finance, and the environment.