Firms That Are Involved in More Than One Type of Business

question 187

Multiple Choice

Firms that are involved in more than one type of business could be evidence of an attempt to

• A)increase private profit at the expense of consumers.
• B)internalize some forms of positive externalities.
• C)reduce the impact of government regulations on their business.
• D)increase the private marginal cost of production.

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Definitions:

Misleading Advertising

Advertising that deceives or is likely to deceive the consumer, often leading to an incorrect understanding or decision.

Competition Act

A law designed to preserve and promote competition and to protect consumers from anti-competitive practices by companies.

Money-back Guarantee

A pledge to refund a customer's payment if the product or service does not meet the advertised standards or expectations.

Abuse of Dominant Position

An anti-competitive business practice where a dominant firm uses its market power to exclude competitors or exploit consumers.