Which of the Following Is False of Limiting a Firm's

question 90

Multiple Choice

Which of the following is false of limiting a firm's behaviour through competition laws?

• A)competition laws focus on granting competitive firms the option to form a cartel
• B)policymakers have the easy task of determining whether some firms' decisions have legitimate purposes
• C)policymakers should not always limit a firm's pricing power
• D)the proper scope of competition laws is often poorly defined and vague

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Definitions:

Bargained-For Exchange

A fundamental principle in contract law where both parties must exchange something of value for a contract to be considered valid and enforceable.

Genuine Assent

The agreement to enter into a contract based on a clear understanding of its terms, without any duress, fraud, or undue influence.

Undue Influence

An improper or wrongful pressure exerted on a person, resulting in the person acting against their free will or in a manner not reflective of their intent.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.