Which of the Following Is Least Likely to Violate the Sherman

question 132

Multiple Choice

Which of the following is least likely to violate the Sherman Act or the Clayton Act?

• A)Competitive firms A, B, and C meet and agree to charge a common price.
• B)Competitive firms D and E, each with 35 percent market shares, merge into a single firm.
• C)Competitive firms F and G independently charge lower prices to frequent customers than to occasional customers.
• D)Large dominant firm H forces buyers to purchase its product X in order to buy its popular product Y.

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Definitions:

Budget Constraints

Budget constraints represent the limitations on the spending choices of consumers based on their income and the prices of goods and services.

Total Utility

The overall satisfaction a consumer receives from consuming a particular quantity of goods or services.

Marginal Utility

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.

Purchases Shift

A change in the buying behavior of consumers, often referring to a movement in demand for goods or services in the market.