Which of the Following Is a Positive,as Opposed to a Normative,statement

question 53

Multiple Choice

Which of the following is a positive,as opposed to a normative,statement?

• A)The US Department of Justice should allow a merger between AT&T and T-Mobile because it would have little effect on consumers.
• B)Antitrust laws should be used to prevent further concentration in the wireless telephone service market.
• C)The US Department of Justice sued AT&T to block its merger with T-Mobile.
• D)The wireless telephone service market is too highly concentrated.

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Definitions:

Substitution Effect

The shift in consumption tendencies brought on by changes in the relative value of goods, compelling consumers to opt for an alternative product.

Utility Function

A mathematical representation that ranks alternatives according to their utility for an individual, illustrating preferences over a set of goods and services.

Substitution Effect

The change in consumption that results from a change in the price of one good relative to the prices of other goods, holding utility constant.

Income Effect

The change in consumption that results from a change in real income or purchasing power.