Kim Mathews, a retired school teacher, recently relocated to her old neighborhood. To her dismay, she learned that the trash collection company in the area charged almost double the price compared to the companies in other areas. She complained to the company manager but was rudely told that she had to either pay the fee or dispose the trash on her own. Kim had no other option but to pay the fee. The most likely reason the company had such poor customer service is that it:
A) was dependent on consumers' repeat business.
B) did not have competitors providing the same service.
C) did not want to serve retired individuals.
D) served only high-income households.

Question

Quizplus · Accepted Answer

The likely reason for the poor customer service of the trash collection company is that they did not have competitors providing the same service. In the absence of competition, the company could afford to charge high fees and disregard customer complaints.

Kim Mathews, a Retired School Teacher, Recently Relocated to Her