If Occupational Safety Laws Were Changed So That Firms No

question 209

Multiple Choice

If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect

• A) the demand for the products of this industry to increase.
• B) the market price of the products of this industry to decrease in the short run but not in the long run.
• C) the firms in the industry to make long-run economic profit.
• D) competition to force producers to pass the lower production costs on to consumers in the long run.

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Definitions:

Product Tampering

The unauthorized alteration or contamination of a product before it reaches the consumer, raising safety and trust issues.

Inductive Outline

A framework for presenting information that starts with specific observations and moves towards a general conclusion.

Claim Refusals

Instances when requests or demands are not granted or acknowledged positively, often in business or customer service contexts.

Warranty

A guarantee provided by a manufacturer or seller regarding the condition of a product and pledging to repair or replace it if necessary within a specified period.