What Is a Disadvantage of Standards

question 40

Multiple Choice

What is a disadvantage of standards?

• A) reduced competition
• B) devices produced by different vendors may not interoperate
• C) higher prices
• D) they can open domestic markets in larger countries to overseas competition

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Definitions:

Antitrust Laws

Legislation aimed at preventing monopolies and promoting competition among businesses.

Economic Rents

Economic rents refer to the excess payment made to a factor of production over what is needed to bring that factor into its current use.

Natural Gas Extraction

The process of exploring, drilling, and producing natural gas from underground reservoirs.

Imperfectly Elastic

Describes a demand curve that does react to price changes, but not in a perfect one-to-one relationship, indicating some sensitivity to price changes but not to an infinite degree.