Which of the Following Best Describes How Law Protects Members

question 27

Multiple Choice

Which of the following best describes how law protects members of society?

• A) setting rules with penalties and making those who break the law accountable
• B) establishing ethical rules and minimizing risks before they materialize
• C) constraining business activity and regulating commercial relationships
• D) minimizing unknown contingencies to avoid irreconcilable disputes between businesses

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Definitions:

Competitive Industry

A market scenario where multiple firms produce similar products, leading to high levels of competition.

Short-Run Industry Supply

The total quantity of goods that firms in a particular industry are willing and able to sell at different prices in a short period, with some factors held constant.

Total Cost Function

The total cost function is a mathematical representation that shows how total costs of production vary with changes in output level.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.