In a Small, Isolated Town in a Western State, There

question 224

Multiple Choice

In a small, isolated town in a western state, there are only four dentists. In such a case, we can be confident that

• A) there are high profits in the dental business in this town.
• B) there are no profits in the dental business in this town.
• C) the possibility of new dentists coming to town will limit the profits of the existing dentists.
• D) collusion cannot occur among the four dentists.

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Definitions:

Legally Binding

Refers to agreements or contracts that have legal force and are enforceable by law.

Disaffirm A Contract

The legal right of a party to renounce or reject a contract, which can be particularly relevant when one of the parties is a minor or otherwise lacks the capacity to contract.

Executory Contracts

Contracts under which both parties to the agreement have unfulfilled obligations that remain to be done.

Prohibited By Statute

Actions or practices that are explicitly disallowed by written laws.