Which of the Following Is Not One of the Ways

question 122

Multiple Choice

Which of the following is not one of the ways that antitrust laws promote competition?

• A)Antitrust laws allow the government to prevent mergers.
• B)Antitrust laws allow the government to break up big companies into smaller ones.
• C)Antitrust laws prevent companies from coordinating their activities in ways that make markets less competitive.
• D)Antitrust laws allow the government to shut down a firm if the government believes the firm has monopoly power.

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Definitions:

Utility Theory

A theory in economics that assesses the usefulness or satisfaction a consumer gains from consuming goods and services.

Total Utility

The complete fulfillment experienced from the consumption of a specific amount of products or services.

Marginal Utility

The increased happiness or value a buyer experiences by consuming an extra unit of a good or service.

Diminishing Marginal Utility

The principle that as an individual consumes more of a good, the utility (satisfaction or benefit) gained from each additional unit decreases.