A floor price is
A. equal to the initial market equilibrium price.
B. below the initial market equilibrium price.
C. the maximum legal price that can be charged in a market.
D. the minimum legal price that a firm can charge.
Answer: D
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Explain the principle "Make the poorest as well off as possible." Who proposed it?
What will be an ideal response?
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost of $4 and they are charging the profit-maximizing retail price of $12, what is wholesale price of the product?
A) $16 B) $4 C) $8 D) $12
How is it possible to have a separation between ownership and control of a major corporation? What specific type of market imperfection can cause this?
What will be an ideal response?
A comprehensive income tax with few loopholes is efficient because labor
a. supply is very little affected by taxation. b. demand is very little affected by taxation. c. supply is highly responsive to taxation. d. demand is highly responsive to taxation.