What Is Required to Prove Fraud, as Opposed to Negligence

question 42

Multiple Choice

What is required to prove fraud, as opposed to negligence?

• A) Gross error
• B) Intent
• C) Preponderance of the evidence
• D) Confession from the perpetrator

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Definitions:

Business-stealing Externality

A situation where a new entrant in a market captures a portion of the incumbent firms' customers, causing economic losses to existing businesses.

Product-variety Externality

An economic effect where the variety of products available in the market impacts the welfare of consumers, often positively.

Efficient Scale

The level of production at which average total costs are minimized, indicating the most cost-effective scale of operation.

Marginal Cost

The expenditure required to produce one more unit of a particular product or service.