Industrial Regulation Generally Applies in Cases Where

question 159

Multiple Choice

Industrial regulation generally applies in cases where

• A) society would benefit if a monopoly is prevented from evolving in a certain market.
• B) a monopoly already exists, and the government believes that society would benefit if it is dissolved.
• C) there is an economic reason for an industry to be organized as a monopoly.
• D) foreign competition in the form of imports is prevalent in the market.

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Definitions:

Tying Arrangement

A sales tactic where a seller requires the buyer to purchase a secondary product or service together with the primary product.

Corrective Advertising

A form of advertising mandated by regulatory bodies to correct misleading or false claims made in previous advertisements.

Federal Trade Commission

A government agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.

Corrective Advertising

Advertising efforts undertaken to correct previous misleading information provided to consumers, often mandated by regulatory agencies.