The result of executive officers sitting on several corporate boards is________________?
Correct answer: C. interlocking directorates
- A. oligopolies
- B. trusts
- C. interlocking directorates
- D. restraint of trade
Explanation
When executives or directors serve on the boards of several companies, the firms are linked through common decision-makers. This arrangement is called an interlocking directorate, not an oligopoly or trust.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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