Question
Businesses that do not have adequate competition can take advantage of consumers in which of the following ways?
Higher sales tax
Better quality
Higher prices
False advertising
Higher sales tax
Better quality
Higher prices
False advertising
Answers
GPT-4o mini
Businesses that do not have adequate competition can take advantage of consumers primarily in the following ways:
- **Higher prices**: Without competition, a business may raise prices since consumers have fewer options for alternatives.
- **False advertising**: In a less competitive environment, businesses might engage in misleading advertising practices because there are fewer checks from competitors to hold them accountable.
While "better quality" and "higher sales tax" are generally not advantages that businesses would take to exploit consumers directly, higher prices and false advertising are common tactics used in markets with inadequate competition.
- **Higher prices**: Without competition, a business may raise prices since consumers have fewer options for alternatives.
- **False advertising**: In a less competitive environment, businesses might engage in misleading advertising practices because there are fewer checks from competitors to hold them accountable.
While "better quality" and "higher sales tax" are generally not advantages that businesses would take to exploit consumers directly, higher prices and false advertising are common tactics used in markets with inadequate competition.