Andres Has Created an Online Service That Allows Users to Instantaneously

question 24

Multiple Choice

Andres has created an online service that allows users to instantaneously distribute documents to hundreds of other people.Which of the following strategies can help him reduce his risk of being held liable for the content distributed by the users of his service?

• A)He should review all documents and edit anything that might be considered offensive.
• B)He should include a provision in his terms of use warning users that he will monitor every message they distribute through the service.
• C)He should include a provision in his terms of use allowing him to claim indemnification from a user if he is held liable for something they distributed through the service.
• D)He should avoid telling users what they can or cannot distribute through the service for fear of infringing their free speech.
• E)He should not worry about this risk and do nothing as it is not a likely legal hazard of his business.

Understand the concept and implications of monopoly in the market.

Grasp the law of demand and its effects on the market.

Understand how markets allocate resources effectively.

Comprehend the interaction between demand and supply curves and their shifts.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or business activity within a certain range or period.

Short-Run Marginal Cost Curve

A graph that shows the cost of producing one more unit of a good or service in the short term, when some factors of production are fixed.

Optimal Level

The most efficient, effective, or desirable point or degree in a process, situation, or system.

Leases

Legal agreements that allow for the use of property or equipment for a specified time in exchange for payment.