Kim moved from one house in a neighbourhood to another house in a nearby neighbourhood. She called her trash collection company to inform them of her address change and was dismayed to learn that her trash collection bill would be $10 a month higher than it was at her previous residence even though it is the same company. She commented on this and was told by the company that was the price and she could deal with removing her own trash if she didn't like the price hike. Kim had to pay the higher price because there was no other company allowed to service this neighbourhood. Which statement best explains why Kim was treated so poorly by this company?
A) The trash company was dependent on her repeat business.
B) No other competitors are providing this service.
C) Trash disposal is a regulated service.
D) The company really doesn't need her business.

Question

Quizplus · Accepted Answer

The trash company is the only one permitted to provide service in the neighbourhood, giving them a monopoly on the service. As a result, they do not feel the need to provide good customer service or competitive pricing because there is no competition.

Kim Moved from One House in a Neighbourhood to Another