Which Is the Best Argument for Legally Protecting Trade Secrets

question 47

Multiple Choice

Which is the best argument for legally protecting trade secrets?

• A) Trade secrets are the intellectual property of the employee who developed them.
• B) Employees who disclose trade secrets violate the confidentiality owed to their employers
• C) The theft of trade secrets evens out the competition. Employees who disclose trade secrets violate the confidentiality owed to their employers
• D) Employees who disclose trade secrets know how to communicate.

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Definitions:

Increasing-Cost Industry

An industry in which the costs of production increase as the industry's output expands, typically due to resource limitations or increased demand for inputs.

Slope

A measure of the steepness or incline of a line, representing the rate at which y-values change for each unit increase in x-values.

Pure Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit from the market.

Long-run Adjustments

Changes a firm or industry makes over a long period to adapt to changes in demand, technology, or other economic factors.