If All Consumers in an Economy Have Maximized Their Utility,and

question 8

Multiple Choice

If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical

• A)total utilities for each good.
• B)consumption of each good.
• C)marginal utilities per unit of each good.
• D)marginal utilities for each good.
• E)ratios of marginal utility to price for each good.

---

Definitions:

Monopoly Power

The ability of a single supplier in a market to dictate prices and control output, usually due to the lack of competition.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 to prohibit monopolies and foster competition.

Price-Fixing

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

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting competition and preventing monopolies by prohibiting certain practices that could lead to anticompetitive behavior.