The Paradox of Sanctioning Is

question 29

Multiple Choice

The paradox of sanctioning is

• A) the greater the sanction (fines, jail time, etc.) the greater the deterrent; however, courts are reluctant to apply large sanctions.
• B) the greater the enforcement costs, the more likely firms are to avoid compliance.
• C) the larger the sanction, the greater the publicity.
• D) all of the above.

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Definitions:

Reference Prices

The prices that consumers consider reasonable and fair for a product.

Break-Even Point

The point at which the costs of producing a product equal the revenue made from selling the product.

Variable Costs

Costs that vary depending on the number of units produced or sold.

Units Produced

Units Produced refers to the total number of units of a product that are manufactured during a specific period.