[BMWinNorthdakota]

Alright, So... taking this business ethics class "Phil 216"....

Our professor is a tricky little bastards and takes his time making questions that really dont asses your knowledge of the given topic, but usually your ability to interpret the question

I stumbled upon this easy question during one of our quizes (online). I recently put the correct answer and thought, wait a minute, this tricky bastard... I bet its (The answer I selected). Of course, it was my original choice...

I emailed him...

Do I have a claim or has he justified himself?

Follows is the email we exchanged... read the bottom first.


Max:



Don’t worry about bickering. JD specified the differences between the two. I just asked about price gouging and expected you to pick up on JD’s distinction. The way I worded the question (the seller takes advantage of the situation and significantly raises the price) suggests that something may have happened to change the status quo (like Katrina). Of course the something could have been a company having a monopoly in that market but now we’re making some assumptions that seem to narrow the scope of the question in a way that is not necessary. I am capable of writing a bad question now and then, but this doesn’t strike me as one yet. In fact, this one seems good in that it forces one to carefully consider the difference between some of those concepts he talks about in that section.



From: Max [mailto:Max.@my.ndsu.edu]
Sent: Tuesday, April 05, 2011 5:47 PM
To: Morris
Subject: Re: Business Ethics (online): Quiz 9 question



Don't mean to bicker, but you didn't specify those "circumstances"outside of consumer having limited options.. that implies that it could be a price gouging incidence (a generator company charging 10,00 dollars for an otherwise 1,000 generator in a tragedy like Katrina where supplies were limited due to wide spread power loss) or a monopoly taking advantage of their market share (verizon wireless charging a higher rate in an area where they are the only provider).. Both situations the buyer has limited choices and the producer is jacking the price up..

-max

Sent from my Verizon Wireless BlackBerry

From: , " <B.@ndsu.edu>

Date: Tue, 5 Apr 2011 11:38:42 -0700

To: Max<Max.@my.ndsu.edu>

Subject: RE: Business Ethics (online): Quiz 9 question



Max:



Hi. Thanks for the email. The difference turns on the circumstance leading to consumers paying a higher price. With monopolistic pricing, it’s the market power the company has as a monopoly that enables them to get a higher price. With price gouging there are different circumstances that trigger the same result, for example, short supply (or even just the belief that the supply is limited). Monopolies can gouge consumers, but consumers can get gouged even if the market is not dominated by a monopoly. Hope that helps.



Brad



From: Max [mailto:Max@my.ndsu.edu]
Sent: Saturday, April 02, 2011 3:02 PM
To: Morris, Bradley
Subject: Business Ethics (online): Quiz 9 question



The bellow was rather misleading if you ask me. With the word monopoly in mind, I as a business major have "single" or "few" in mind as far as consumer choice is concerned.

Heres JD's definition for Monopolistic pricing:
"Monoplistic Pricing"- Either individual companies or a group of conspiring companies use their market power to force consumers to pay a higher price than they would have if there were real competition.

Monopolistic is inline w/- "Buyer has minimal purchase options"
So in this case, they producers certainly are taking advantage of their position as a singular producer to raise the prices as the buyer really doesn't have any other choice... wouldn't this justify my selection?

Take a look.

Thanks,

-Max

Incorrect


_________ occurs when the buyer has minimal purchase options for something she needs and the seller takes advantage of the situation and significantly raises prices.

Answer

Selected Answer:


d.

Monopolistic pricing

Correct Answer:


c.

Price gouging

[Freakazoid]

I knew without a doubt that price gouging was the answer they were looking for...

HOWEVER monopolistic is also a correct answer as well, as there was *no other information supplied* by the question. This is as you mentioned. I realize what your professor was saying, but the way he worded the question is NOT in fact the way he THINKS he worded the question, there's nothing in the question to imply a change to the status quo.

If you want to take the approach of some of the standardized tests, where there's multiple right answers and you have to choose the BEST right answer. You're SOL. but for a college class, I'd say it's still worth arguing your case.

The reason why it's the 'best right answer' is because of the key word 'need'. (imo)

[JayKay335i]

I'd say the most correct answer would be price gouging, but the question was vague. Our professors sometimes do similar things but if enough people get it wrong they'll give credit. Anywho, price gouging would be the most correct.

[BMWinNorthdakota]

Originally Posted by Freakazoid

I knew without a doubt that price gouging was the answer they were looking for...

HOWEVER monopolistic is also a correct answer as well, as there was *no other information supplied* by the question. This is as you mentioned. I realize what your professor was saying, but the way he worded the question is NOT in fact the way he THINKS he worded the question, there's nothing in the question to imply a change to the status quo.

If you want to take the approach of some of the standardized tests, where there's multiple right answers and you have to choose the BEST right answer. You're SOL. but for a college class, I'd say it's still worth arguing your case.

The reason why it's the 'best right answer' is because of the key word 'need'. (imo)

As did I.. I selected it initially (4 total choices)... Then I got to thinking about his prior ways... "This is too easy... Its gota be monopolistic..."

Both answers are acceptable +1

Originally Posted by JayKay335i

I'd say the most correct answer would be price gouging, but the question was vague. Our professors sometimes do similar things but if enough people get it wrong they'll give credit. Anywho, price gouging would be the most correct.

Ill email the guy back and post the response...

Thanks for the ammo freakazoid

I bet I end up pissing him off... the guys a stubborn sob.

[coh4777]

It's "help" not "halp." You should know that since you are attending a "college" not a "collage!"

Srsly tho, while you have a strong case that monopolistic pricing could work with the way that question was phrased, I think price gouging is the better answer and the correct one given that it is a multiple choice question.

[BMWinNorthdakota]

Originally Posted by coh4777

It's "help" not "halp." You should know that since you are attending a "college" not a "collage!"

Srsly tho, while you have a strong case that monopolistic pricing could work with the way that question was phrased, I think price gouging is the better answer and the correct one given that it is a multiple choice question.

Broski, I knew this.... but judging by his trickery of the past... I figured it would had been better suited to choose the one that seemed less obvious.

Assuming a monopolistic situation and a price gouging situation are both logical assumptions... as there is no other info provided....

The question is written in a bad way.. lets see if we can get him to admit it...

[persian54]

it's not against rules for a teacher to be tricky... it helps get the 'weak' out.

That's what my professor told me before

[Freakazoid]

Originally Posted by BMWinNorthdakota

Broski, I knew this.... but judging by his trickery of the past... I figured it would had been better suited to choose the one that seemed less obvious.

Assuming a monopolistic situation and a price gouging situation are both logical assumptions... as there is no other info provided....

The question is written in a bad way.. lets see if we can get him to admit it...

good luck. If this was a high level class I'd tell you to lick your wounds, as you'd just piss him off.

I wouldn't push TOO much, thinking about it more, I do see where your professor is coming from. It was VERY subtle wording, but he did say 'take advantage', and he did say 'needs'. What i would try to do is convince your professor that they're both right answers and let him go from there. I would not convince him to necessarily accept your answer, just convince them that both are right with the wording. You may even concede that the other answer IS the best answer....but that largely depends on how you think the professor would react.

[Freakazoid]

Originally Posted by persian54

it's not against rules for a teacher to be tricky... it helps get the 'weak' out.

That's what my professor told me before

I would agree with you here, but it's a lower level class (200 series). Lower level classes are not there for the tricking, they're there for learning right and wrong.