All a Business Has to Do to Maintain Ethical Conduct

question 83

True/False

All a business has to do to maintain ethical conduct is to follow the law.

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Definitions:

Price-Fixing

An illegal agreement among competitors to set prices at a certain level, rather than allowing them to be determined naturally by market forces.

Cartels

An agreement among competing firms to control prices or exclude entry of a new competitor in the market, often illegal and against free market principles.

Antitrust Laws

Legislation enacted to prevent monopolies and encourage competition in the market, ensuring fair practices and protecting consumers.

Economies Of Scale

Cost advantages obtained due to the increased level of production, which causes the cost per unit of output to decrease.