Which of the Following Is an Advantage That Self-Regulatory Agencies

question 103

Multiple Choice

Which of the following is an advantage that self-regulatory agencies such as the BBB and the NARB have over governmental laws and regulatory agencies?

• A) Firms must strictly abide by the rulings of self-regulatory agencies.
• B) Establishment and implementation are usually less expensive.
• C) They have better tools to enforce their rulings.
• D) Guidelines are often stricter and create greater compliance from firms.
• E) Money is very rarely an issue in enforcing decisions of self-regulatory agencies.

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Definitions:

Price Maker

A firm or entity that has the power to influence the price at which a product or service is sold, typically due to a lack of competition or a unique product offering.

Demand Curve

A visual representation indicating the quantity of a good consumers are ready to purchase at various prices, usually sloping downwards to the right.

Monopoly Firm

A company that is the sole provider of a product or service in a market, facing no direct competition.

Computing Monopoly Profit

Involves calculating the difference between a monopolist's total revenues and total costs, highlighting the profit maximization under a monopoly market structure.