All of the Following Statements About the Competition Act Are

question 73

Multiple Choice

All of the following statements about the Competition Act are true, except:

• A)The Competition Act covers promotional allowances.
• B)The Competition Act allows price differentials to different customers under certain changing market conditions.
• C)It is easy to prove that price discrimination under the Competition Act has taken place.
• D)The Competition Act deals with price discrimination.

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Definitions:

Most Efficient Output

The level of production where average total costs are minimized.

Explicit Costs

These are direct monetary payments a firm makes to purchase inputs for its production, such as wages, rent, and materials.

Implicit Costs

The opportunity costs of using resources already owned by the firm for production, as opposed to external spending.

Economic Profit

The difference between revenue generated from output and the opportunity costs of inputs used, considering both explicit and implicit costs.