Which of the Following Is True of Latent Functions

question 27

Multiple Choice

Which of the following is true of latent functions?

• A) They are clearly recognized.
• B) They are publicized.
• C) They are evident.
• D) They are unintended.

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Definitions:

Tacit Collusion

A situation where firms in a market understand each other's behaviors and outcomes without direct communication, leading to a form of non-competitive equilibrium.

Antitrust Laws

Legislation enacted to prevent new monopolies from forming and police those that already exist to protect consumers and ensure fair competition in the marketplace.

Predatory Pricing

A strategy where a company sets very low prices to eliminate competition and establish a monopoly in the market.

Tacit Collusion

An unspoken, implicit understanding among competitors to avoid certain competitive behaviors, such as price cutting.