A "Trade Regulation Rule" Issued by the FTC That Applies

question 412

Multiple Choice

A "trade regulation rule" issued by the FTC that applies to a specific business practice sets a standard:

• A) that everyone in the industry must follow or be subject to criminal conviction
• B) must be agreed upon by a majority of the members of the industry to become law
• C) after a violation is proven the FTC can close down the violator's business
• D) is voluntary but provides quality guidance for the industry
• E) none of the other choices

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Definitions:

Fixity of Production

The characteristic of production processes where inputs and outputs are fixed in the short term, allowing little flexibility.

Average Costs

is the total costs divided by the quantity produced, used to determine the cost of producing one unit of goods or services.

Average Cost

The aggregate expense of manufacturing, when divided by the quantity of items made.

Marginal Costs

The price of generating one more unit of a product or service.