Economic Utilities
This type of utility is created when raw materials are changed into finished products.
What is Form Utility?
This market structure has many buyers and sellers and identical products.
What is Perfect Competition?
In a competitive market, prices are mostly determined by these two forces.
What are Supply and Demand?
This 1890 law was the first major U.S. law to limit monopolies and promote competition.
What is the Sherman Antitrust Act?
A grocery store placing milk at the back of the store to make customers walk past other items relates to this concept of increasing value.
What is Place Utility?
This utility makes a product available where customers want to buy it.
What is Place Utility?
A market dominated by only a few large firms is called this.
What is Oligopoly?
When a monopoly controls the market, prices tend to be this compared to competitive markets.
What are Higher Prices?
This act strengthened antitrust laws and prohibited price discrimination and certain mergers.
What is the Clayton Act?
When a company dominates the market with no competitors, this situation may trigger government investigation.
What is a Monopoly?
Retail stores staying open late during the holidays is an example of this utility.
What is Time Utility?
This market structure has only one seller controlling the market.
What is Monopoly?
In perfect competition, firms are considered this type of price influence.
What are Price Takers?
This law created the agency responsible for preventing unfair business practices.
What is the Federal Trade Commission Act?
The government uses these laws to prevent businesses from becoming too powerful.
What are Antitrust Laws?
This utility occurs when ownership of a product transfers from seller to buyer.
What is Possession Utility?
In this market structure, companies often compete using advertising and branding rather than price.
What is Oligopoly?
When only a few firms dominate an industry, they may influence price through cooperation or competition.
What is an Oligopoly?
This act prevents companies from charging different prices to competing retailers.
What is the Robinson-Patman Act?
Companies like major airlines or smartphone manufacturers often operate in this market structure.
What is an Oligopoly?
Advertising and product descriptions increase this type of utility by helping consumers understand a product’s value.
What is Information Utility?
This type of market structure usually results in the lowest prices for consumers due to high competition.
What is Perfect Competition?
This market structure typically produces less output and higher prices than a competitive market.
What is a Monopoly?
This law prevents companies from merging in ways that reduce competition.
What is the Celler-Kefauver Antimerger Act?
Transforming wood into furniture is an example of this economic utility.
What is Form Utility?