Which of the Following Is False Regarding the Consumer Product

question 19

Multiple Choice

Which of the following is false regarding the Consumer Product Safety Act?

• A)It can ban consumer products from the market.
• B)It enforces mandatory standards regarding product safety.
• C)It conducts research regarding potentially hazardous products.
• D)It educates consumers about product safety.
• E)It usually issues product recalls on its own without the involvement of the companies involved.

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Definitions:

Purely Competitive Industry

An economic setup where numerous purchasers and vendors exist, entry and exit are unrestricted, and the product offered is identical across sellers.

Oligopoly

Oligopoly is a market structure characterized by a small number of firms whose decisions about production and pricing significantly affect the market.

Monopolistically Competitive Industry

An industry characterized by many firms selling products that are similar but not identical, allowing for competition based on product differentiation.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for some degree of market power.