Suppose That Choice Sets Are Convex but We Tastes May

question 8

Essay

Suppose that choice sets are convex but we tastes may or may not be convex.(Assume all our other usual assumptions about tastes hold.)The first order conditions of the constrained utility maximization problem are then
a.
necessary conditions for a true optimum.
b.
sufficient conditions for a true optimum.
c.
necessary and sufficient conditions for a true optimum.
d.
none of the above.

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Definitions:

Robinson-Patman Act

A federal law in the United States that bans practices by producers that hinder competition, particularly discriminating in pricing.

Functional Discount

A price reduction offered to channel members who perform certain functions such as selling, storing, and record-keeping.

Wholesaler

A business or person that buys goods in large quantities from manufacturers and sells them in smaller amounts to retailers, typically at lower prices.

Clayton Act

A United States antitrust law, passed in 1914, aimed at promoting competition and preventing monopolies by prohibiting certain types of anti-competitive practices.