​Michaela, Age 25, Has Set a Personal Goal of Being

question 85

Multiple Choice

​Michaela, age 25, has set a personal goal of being vice president of ABX Corp. by the time she is 32. She has determined that nothing will stand in her way of her goal. She hears that the president of ABX Corp. is engaged in a business enterprise with the president of a competitor that is a conflict of interest with his role of president. She reports the business relationship to the press anonymously. Upon hearing the news, the board of directors of ABX Corp. calls a special meeting to investigate the charges. Finding them to be true, they terminate the president and promote the existing vice president to president and Michaela to vice president. What individual factor most affected Michaela's ethical decision?

• A)​Personal goals.
• B)​Personal values.
• C)​Individual knowledge of an issue.
• D)​Cultural norms.

Recognize the role of economies of scale and technological advantages in creating monopolies.

Understand the societal implications of monopoly pricing and market power redistribution.

Understand the behavior and pricing strategies of monopolies, including reactions to competition and the practice of price discrimination.

Analyze the concept of X-inefficiency and its causes within monopolistic firms.

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Definitions:

Flooding

Flooding is a psychological treatment method for phobias and anxiety disorders where an individual is exposed to an overwhelming amount of the feared stimulus in order to extinguish the fear response.

Hypochondriasis

A condition characterized by an excessive preoccupation with the fear of having a serious disease.

Childhood Repression

A defense mechanism identified by psychoanalytic theory, where unpleasant childhood memories are unconsciously blocked out as a protective measure.

Aversive Conditioning

A form of behavior modification that involves using unpleasant stimuli to discourage undesirable behaviors.