Which of the Following Is Necessarily a Problem with Competition

question 36

Multiple Choice

Which of the following is necessarily a problem with competition laws?

• A)they promote competition
• B)they limit monopoly power
• C)they may target a business whose practices appear to be anti-competitive but in fact has legitimate purposes
• D)all of the above

---

Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Raw Materials

Basic goods used in the production of final products.

Barrier to Entry

Factors that prevent or hinder companies from entering a specific market, such as high startup costs, stringent regulations, or strong competition.

Personnel Shortages

Situations where there are not enough employees to handle the work required, often affecting service and production levels.