In Considering a Covenant Not to Compete in an Employment

question 24

Multiple Choice

In considering a covenant not to compete in an employment contract,the court in the case of Payroll Advance,Inc.v.Yates said in its opinion:

• A)in order to obtain an injunction it is necessary for the employer to show that actual damage has occurred.
• B)covenants not to compete are presumptively valid, and they are enforceable to the extent they are reasonable.
• C)the question of reasonableness of a restraint requires consideration of such circumstances as the subject matter of the contract, the purpose to be served, the situation of the parties, the extent of the restraint, and the specialization of the business.
• D)Both (b) and (c).

Examine the trade-offs between product variety and allocative efficiency in monopolistically competitive markets.

Assess the implications of monopolistic competition on consumer preferences and market outcomes.

Understand the concept of monopolistic competition and how it differs from pure competition.

Identify and explain forms of nonprice competition within monopolistic competition.

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Definitions:

Research and Development (R&D)

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Production Function

An economic model depicting the relationship between input combinations and the maximum output that can be produced with those inputs.

Differentiating

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Brand Positioning

Marketing strategy that aims to create a unique impression in the customer's mind so that the customer associates something specific and desirable with the brand that is distinct from the rest of the marketplace.