Which of the Following Would Not Help Protect You from Unethical

question 74

Multiple Choice

Which of the following would not help protect you from unethical or incompetent advice from a financial adviser?

• A) Educating yourself on various financial products
• B) Testing questionable advice with another financial adviser/broker
• C) Relying entirely on the adviser as to when to buy and sell
• D) Knowing your risk tolerance

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Definitions:

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, representing the surplus generated beyond the opportunity cost.

Marginal Revenue

The increase in earnings from the sale of one additional unit of a good or service.

Competitive Price-Taker

An enterprise that is unable to dictate the market price and thus must conform to the current market price for its offerings.

Monopoly

A market structure where a single supplier dominates the market, often leading to higher prices and less innovation due to lack of competition.